Origin is reaping some of the rewards of this investment with Octopus Energy which is now worth nearly $410 million on paper.
👉 Background: Origin Energy is the largest electricity and gas provider in Australia with over 4.2 million electricity customers around Australia.
👉 What happened: Back in May 2020, Origin Energy first invested in UK based clean energy provider Octopus Energy. Since then, it has built up a stake of more than 22% of the company.
👉 What else: Now, Origin is reaping some of the rewards of this investment. Octopus Energy has received a new investment, with a 15% uplift from its previous valuation, set only 6 months ago. This means Origin Energy's stake is now worth nearly $410 million on paper and growing into a key part of its business.
💡With the right investment, the sidekick can sometimes become the hero.
💡When an incumbent in an industry invests in a plucky startup, it can lead to enormous synergies and even become a core part of the investing company’s overall value, like Octopus Energy with Origin.
💡Origin isn’t the first company to see one of its smaller, tech investments turn into a core part of its business. Remember when News Corp took a 44% stake in realestate.com.au back in 2001 for $2 million. That investment now worth $14 billion and is a core part of News Corp's business.
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