Kraken Technology Raises $175M Series B at $1B for Uncrewed Boats

British maritime defence firm Kraken Technology Group closed a $175M Series B led by DTCP at a $1B valuation, cementing its status as Europe's newest defence unicorn as it scales K3 Scout production for NATO navies.

Key Takeaways

  • Kraken Technology Group raised a $175M Series B led by DTCP at a $1B valuation, becoming Europe's newest uncrewed surface vessel defence unicorn.
  • Backers include the NATO Innovation Fund, Rheinmetall, British Business Bank, Inocea Group and several venture firms; early investors like NSSIF, SmartCap, Notion Capital and Speedinvest converted prior positions.
  • Funds will scale K3 Scout and K4 Manta development plus localised manufacturing: Rheinmetall's Blohm+Voss yard in Hamburg, Anduril in the US, and Davie Shipbuilding in Canada.
  • The raise follows a breakout year with a $49M USSOCOM OTA for K4 Manta, Royal Navy Project Beehive deliveries, and Kraken's first US military contract.
  • The same week, Kraken and Capewell demonstrated the world's first USV airdrop, releasing a K3 Scout from an A400M at 1,300 feet.

Kraken Technology Raises $175M Series B at $1B for Uncrewed Boats

Fareham-based Kraken Technology Group has closed a $175 million Series B funding round at a $1 billion valuation, making the maritime defence company Europe's newest uncrewed surface vessel (USV) unicorn as NATO navies race to field autonomous boats in the Baltic, Black Sea and Indo-Pacific.

DTCP-led round pulls in Rheinmetall and NATO Innovation Fund

Digital Transformation Capital Partners (DTCP) led the round, with support from the British Business Bank, NATO Innovation Fund, Rheinmetall, Inocea Group and venture firms HICO, Thesiger Capital Group, BOKA Capital, Supernova Invest and Hakluyt Capital. Early backers including the UK's National Security Strategic Investment Fund, SmartCap, Notion Capital and Speedinvest converted prior positions into equity. PJT Partners advised Kraken on the transaction and Clifford Chance served as legal counsel.

Scaling K3 Scout as NATO orders pile up

The company will spend the fresh capital on continued development of its K3 Scout and K4 Manta platforms and on rapid buildout of localised manufacturing sites. Series production of K3 Scout is already running at Rheinmetall's Blohm+Voss yard in Hamburg, while Anduril Industries is preparing US manufacturing and Inocea's Davie Shipbuilding will assemble vessels in Canada. Kraken flagged additional partnerships in the Middle East and Indo-Pacific in the coming weeks.

Kraken K3 Scout uncrewed surface vessel at sea

From obscure startup to NATO manufacturing partner

The raise caps a breakout year in which Kraken landed its first US military contract, secured a $49 million USSOCOM OTA for K4 Manta and delivered vessels under the Royal Navy's Project Beehive USV initiative. Kraken chief executive Mal Crease said the funding will let the company deploy "hardened, reliable, mission-ready capabilities for NATO and its worldwide partners at an unprecedented scale in the maritime domain."

The deal lands the same week Kraken and Capewell demonstrated the world's first USV airdrop, releasing a K3 Scout from an A400M at 1,300 feet. It also follows a run of maritime autonomy raises tracked by AI2 Robotics' $735M round and defence-tech unicorns like Comand AI. For comparison to naval robotics broader plays, see Impulse Space and Relativity Federal winning NSSL launch slots.

Reporting based on coverage from Kraken Technology Group, Bloomberg, Defence Industry Europe and UKTN.

Category: Funding & Investments

Tags: AI Startups AI AI Infrastructure

Related Articles

Frequently Asked Questions

Who led Kraken Technology Group's $175M Series B and at what valuation?

Digital Transformation Capital Partners (DTCP) led the round at a $1 billion valuation, with participation from the NATO Innovation Fund, Rheinmetall, British Business Bank, Inocea Group and others.

What will Kraken use the Series B funding for?

Continued development of its K3 Scout and K4 Manta uncrewed surface vessels and rapid buildout of localised manufacturing sites in Germany, the US and Canada, with more partnerships flagged for the Middle East and Indo-Pacific.

Where is the K3 Scout being manufactured?

Series production is running at Rheinmetall's Blohm+Voss yard in Hamburg, while Anduril Industries is preparing US manufacturing and Inocea's Davie Shipbuilding will assemble vessels in Canada.

What milestones did Kraken achieve before this raise?

Kraken landed its first US military contract, secured a $49 million USSOCOM OTA for the K4 Manta, delivered vessels under the Royal Navy's Project Beehive, and demonstrated the world's first USV airdrop from an A400M at 1,300 feet with Capewell.