- British tech unicorn picks Germany as first market for European expansion
- Fast-growth disrupter targeting 1 million customers in Germany by 2024
- Rapid expansion fueled by initial investment of €80 million
- Munich-based energy startup 4hundred to become Octopus Energy Germany
Entech pioneer Octopus Energy today launches in Germany on a mission to disrupt the market and deliver contract freedom and innovative tariffs for customers.
Octopus Energy Germany, as the new business will be named, is targeting 1 million customers by 2024 and committed to fuel this rapid expansion with an initial investment of €80 million in the market.
Octopus Energy first entered the market with the acquisition of Munich-based energy startup 4hundred in September 2019. After a year in which 4hundred was integrated into the Octopus family, Octopus Energy Germany is now ready to start its rollout.
The move marks the latest step in Octopus’s international expansion, following recent launches in the US and operations in Australia. The renewable energy supplier is the UK’s fastest growing private company, having gained 1.7 million customers since launching 4 years ago. In April 2020, it became the UK’s latest tech ‘unicorn’, valued at €1.5 billion after Australia’s leading energy company Origin Energy acquired a 20 percent stake for more than €330 million.
At the heart of Octopus’s success is Kraken, its proprietary cloud-based energy technology platform. The scalable platform provides industry leading operational efficiency and outstanding service quality. Above all, Kraken is designed to drive the smart grid, giving customers access to cheaper electricity when more renewable energy is available. Octopus is now bringing this innovation to Germany, speeding up the country’s transition to a greener, cheaper, and fairer energy system.
For far too long, German households have been enticed into switching energy providers with the promise of large upfront savings. They then find themselves locked into contracts where the true price only becomes clear after the first year, at which point they often find themselves locked in for another 12 months. Energy providers often put more emphasis on marketing than on genuine innovations that can drive down energy bills.
Octopus Energy will offer German customers access to cheaper, greener power for their homes and electric vehicles. Energy prices will be set transparently, without nasty surprises, and customers will have the freedom to switch whenever they want. Customers will also enjoy many of the perks that Octopus Energy provides in the UK, including relentless focus on customer service excellence and innovative tariffs to make green energy cheap energy.
Greg Jackson, CEO and founder of Octopus Energy, said:
“It’s been a very exciting year in which we learned about the German market and welcomed 4hundred into the Octopus Energy family. Now we’re ready for our big launch, and I’m delighted that our German team, which already includes 30 brilliant minds, will lead our push into the market.
“Our office will be based in Germany’s tech hub Munich, close to leading companies of the automotive industry. That’s fantastic because like in the UK, we will soon introduce innovative electricity tariffs for new forms of energy consumption – and bespoke tariffs for EV drivers are right at the top of our list.
“At the same time, we will offer our customers the greatest possible flexibility and the same excellent customer service that our customers in the UK already enjoy.”
Andrew Mack, CEO of Octopus Energy Germany, said:
“Germany took an early lead in the green energy transition, serving as a role model to many other countries around the world. But despite the impressive achievements in greening its power generation, Germany now has the highest prices for electricity in Europe – which is why customers are still reluctant to adopt clean technologies such as electric cars or heat pumps.
“Our tech-enabled tariffs will give German households and EV owners access to cheaper greener power, supporting the government in its efforts to supercharge the uptake of EVs and reach its 2030 climate goals.“
“Combining our knowledge of the market and Octopus’ industry-leading tech platform, we’re confident that we can make a big green dent in the German energy sector in less than 4 years. Throw in contract freedom too and we’re confident we will have one million customers by 2024.
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For journalists in their professional capacity only. Issued by Octopus Energy Ltd. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 09263424. Issued: November 2020.