Kraken Technology Hits $1B Valuation After $175M Series B for Autonomous Warships

Kraken Technology Group, a UK-based maritime defence startup, has raised $175 million (£130 million) in Series B funding at a $1 billion valuation, achieving unicorn status as it scales production of autonomous naval platforms for NATO and allied forces.

The round was led by Digital Transformation Capital Partners (DTCP), with participation from existing investors. The Fareham, England-based company plans to deploy the capital toward expanding its global manufacturing network and accelerating development of its modular unmanned vessel portfolio.

From Prototype to Production

Founded in 2020, Kraken has moved rapidly from concept to deployed hardware. The company now offers three modular platforms: the K3 SCOUT reconnaissance USV, the K4 MANTA unmanned surface-submersible vehicle, and the K5 Kraken high-payload USV capable of carrying munitions, sensors, or logistics payloads in high-sea-state conditions.

Rather than centralizing production, Kraken is pursuing a distributed manufacturing strategy. The company has established partnerships with Rheinmetall in Germany, Anduril Industries in the United States, and Inocea's Davie Shipbuilding in Canada. This approach mirrors the defense industry's shift toward localized, resilient supply chains that can scale during periods of heightened demand.

Government Contracts Secure Footing

Kraken has already secured contracts with the UK Ministry of Defence, NATO European partners, and US Special Operations Command (USSOCOM). These agreements validate the company's technology in operational environments and provide revenue stability as it scales production.

The maritime domain has lagged behind air and land systems in autonomous adoption, despite growing naval threats from near-peer adversaries. Kraken's platforms address capabilities including data collection, precision strikes, logistics resupply, and anti-submarine warfare.

Investor Confidence in Naval Autonomy

"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," said Ole Aguirre, partner at DTCP.

Mal Crease, founder and CEO of Kraken Technology, said the funding will enable deployment "at an unprecedented scale in the maritime domain" for NATO and worldwide partners.

Industrializing Autonomous Naval Warfare

The $1 billion valuation signals a broader shift in defense investment patterns. Autonomous naval systems offer cost advantages over traditional manned vessels while reducing risk to personnel in contested waters. By partnering with established defense manufacturers rather than building its own factories, Kraken is positioning itself as a scalable defense prime rather than a boutique technology developer.

The funding comes as NATO allies accelerate procurement of unmanned systems following lessons from recent conflicts, where attritable platforms proved critical for reconnaissance, strike missions, and force multiplication. Kraken's ability to manufacture through multiple international partners may prove advantageous as allied nations seek to sovereignly produce defense capabilities within their own borders.