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Stock impact report

Why does Octopus's tech ‘powerhouse' need £25m of taxpayer money? [Yahoo! Finance]

National Grid Transco, PLC National Grid PLC (NEW) American Depositary Shares (NGG) 
US:NYSE Investor Relations: investors.nationalgrid.com
Company Research Source: Yahoo! Finance
Kraken has secured £25m of public money , provided by the British Business Bank, which will “help the company scale up and become a UK champion”, we are told. Yet the same press release tells us that Kraken already serves 70 million customer accounts across four continents and is a “powerhouse”. Which rather begs the question: why does it need public money at all? For the uninitiated, Kraken is Octopus's customer service platform, which helps manage everything from billing to complaints. It was purpose built for the company, but has proved so effective that other businesses now use it, including E.ON and National Grid. Octopus is currently in the process of spinning the business out but will retain a significant stake b' Governments usually nationalise or invest for one of two reasons: to bail out failing firms whose collapse would be catastrophic, such as the banks in 2008, or to fund projects that cannot otherwise attract capital, either because they are very costly to de Show less Read more
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