Kraken hits £1bn valuation after funding round

Kraken Technology Group, the British maritime drone company, has closed a $175 million Series B funding round at a valuation of $1 billion, the company has announced.

The round was led by Digital Transformation Capital Partners and supported by other British and European backers including the British Business Bank, the NATO Innovation Fund, Rheinmetall, Inocea Group and venture firms HICO, Thesiger Capital Group, BOKA Capital, Supernova Invest and Hakluyt Capital. Earlier investors, including the NATO Innovation Fund, the UK’s National Security Strategic Investment Fund, SmartCap, Notion Capital and Speedinvest, have converted their earlier holdings to equity as part of the round.

According to the company, the funding will support continued development of its uncrewed surface vessels and payload capabilities while expanding localised manufacturing facilities internationally.

The raise follows what Kraken described as a strong year, during which it secured contracts from the Ministry of Defence, NATO European partners and US Special Operations Command, with its vessels now deployed in support of multiple ongoing conflicts, according to the company. Kraken said it holds manufacturing partnerships with Rheinmetall in Germany, Anduril Industries in the United States and Inocea’s Davie Shipbuilding in Canada, with further partnerships expected in the Middle East and Indo-Pacific regions.

Mal Crease, Founder and CEO of Kraken Technology Group, said: “Kraken is excited to be partnering with DTCP, leading such a prestigious group of European and international investors. This significant funding round will accelerate Kraken’s global roll-out, enabling the deployment of hardened, reliable, mission-ready capabilities for NATO and its worldwide partners at an unprecedented scale in the maritime domain.”

Ole Aguirre, Partner at DTCP, said: “The maritime domain is profoundly under-invested, and Kraken has taken a leading role in bringing affordable, mission-critical high-speed uncrewed vessels to the market in a very short time. Kraken genuinely understands the unique challenges around high-sea-state robotic operations and swiftly responded to NATO requirements, delivering immediate ‘mission-first’ maritime capabilities to secure our waters, our shores and our offshore installations.”

The funding lands days after Kraken’s K3 SCOUT vessel was airdropped from an A400M transport aircraft for the first time anywhere in the world, parachuted from 1,300 feet into waters up to Sea State 4 in Royal Navy-supported trials under Project Beehive, through which the service has procured 20 K3 SCOUTs as an early step towards its Hybrid Navy.

Founded in 2020 with roots in offshore powerboat racing and based at Fareham, Kraken produces a range including the K3 SCOUT, K5 KRAKEN and K7 SABRE surface vessels and the K4 MANTA surface and subsurface platform, with facilities the company says can each produce up to 1,000 units a year.