Kraken Technology hits $1 billion valuation after raising $175 million for autonomous naval drones
The UK startup builds unmanned boats and submarines for NATO and special-operations forces. Fresh funding will push production to four continents.
Key points
- Kraken Technology Group raised $175 million in Series B funding in July 2025, reaching a valuation of $1 billion.
- DTCP (Digital Transformation Capital Partners) led the round, joined by the NATO Innovation Fund, Rheinmetall, Inocea Group, and the British Business Bank among others.
- The company has already delivered autonomous vessels under contracts with the UK Ministry of Defence, NATO European partners, and US Special Operations Command.
- Kraken's three platforms handle surveillance, precision strikes, logistics supply runs, and anti-submarine patrols without a crew on board.
- Manufacturing deals with Rheinmetall in Germany, Anduril Industries in the US, and Davie Shipbuilding in Canada will support rapid global production.
A British startup that builds crewless military boats just crossed the $1 billion valuation mark. Kraken Technology Group, based in Fareham on England's south coast, announced a $175 million Series B round, money it plans to spend scaling autonomous naval vessels for Western defence forces.
DTCP (Digital Transformation Capital Partners), a European investment firm, led the raise. Other backers included the NATO Innovation Fund, Rheinmetall, Inocea Group, the British Business Bank, and the UK's National Security Strategic Investment Fund, a government vehicle set up to back companies with defence and security applications.
What does Kraken actually make?
Three platforms, each built for a different job. The K3 SCOUT is a modular crewless surface boat that accepts different equipment loadouts by mission. The K4 MANTA is a stealthy drone submarine running quietly below the waterline. The K5 Kraken is a larger, high-payload surface vessel for heavier kit.
All three operate without anyone on board. Their listed capabilities cover intelligence collection, precision strikes, logistics, and anti-submarine warfare.
Who is already buying them?
Contracts are live. Kraken secured several deals last year with the UK Ministry of Defence, NATO European partners, and USSOCOM (US Special Operations Command, the branch that runs covert missions). The company says its vessels have been deployed in support of multiple ongoing conflicts, though it hasn't named them publicly.
Founded in 2020 and based five years into operations, Kraken is moving at a pace that older defence primes took decades to reach. It's unrelated to Kraken Robotics, the Canadian underwater-sensor firm with a similar name.
What happens to the funding?
The money goes toward faster production and better payloads. Kraken already holds manufacturing agreements with Rheinmetall in Germany, Anduril Industries in the US, and Inocea's Davie Shipbuilding in Canada, with similar deals in the Middle East and Indo-Pacific described as forthcoming.
CEO Mal Crease said the round would accelerate Kraken's global rollout, enabling deployment of its vessels for NATO and its partners at scale in the maritime domain. DTCP partner Ole Aguirre, quoted by The Robot Report, called the maritime sector "profoundly under-invested" and praised Kraken's speed in responding to NATO requirements.
Kraken's raise mirrors a pattern AI2Day first reported on 22 July 2026, when London Robotics Startup Humanoid raised $152 million at a $1.35 billion valuation with Bosch as a manufacturing partner. The investor appetite is real. What to watch now is whether Rheinmetall's dual role as both backer and manufacturer gives it preferential access to Kraken's order book.
