UK's Kraken Technology Group Raises $175 Million, Becomes Europe's Defense Unicorn

en.Wedoany.com Reported - UK-based unmanned surface vessel manufacturer Kraken Technology Group has raised $175 million in a Series B funding round, valuing the company at over $1 billion and making it Europe's newest defense unicorn. The round was led by Digital Transformation Capital Partners (DTCP), with participation from the British Business Bank, the NATO Innovation Fund, Germany's Rheinmetall, Inocea Group, and several European venture capital firms. Early investors, the UK's National Security Strategic Investment Fund and Speedinvest, converted their shares into equity.

Kraken produces dual-use composite unmanned vessels that require no crew, with a product line including the low-signature K3 SCOUT, the high-endurance K5 KRAKEN, and the submersible K4 MANTA. The core advantages of these unmanned vessels lie in their speed and modularity, enabling missions such as reconnaissance, logistics, anti-submarine warfare, or precision strikes. Over the past year, the company has secured contracts from the UK Ministry of Defence, NATO European partners, and the US Special Operations Command (USSOCOM), with platforms deployed in multiple ongoing conflicts. Prior to the funding, the UK Royal Navy airdropped a K3 SCOUT from an A400M transport aircraft at an altitude of 1,300 feet, marking the world's first deployment of a maritime drone without the need for a port or mothership.

Kraken's operating model differs from competitors; it does not operate its own shipyards but instead manufactures through established producers such as Germany's Rheinmetall, the US-based Anduril, and Canada's Davie Shipyard under the Inocea Group. It is also building additional relationships with partners in the Middle East and the Indo-Pacific region. Kraken believes this partnership-led model allows for faster scaling and access to NATO buyers compared to building its own facilities.

This funding comes amid a boom in defense technology investments. In 2025, global defense tech venture capital reached a record $49.1 billion. As Europe re-arms, it is also building autonomous capabilities. DTCP partner Ole Aguirre stated that the maritime domain has been severely underinvested, and Kraken's affordable, high-speed vessels can rapidly meet NATO's needs.

Founder Mal Crease transitioned to the defense sector in 2020 after two decades of pursuing offshore speedboat records. His core insight was that the next advantage at sea would not come from larger warships, but from swarms of cheap, fast, unmanned vessels. The Ukrainian use of maritime drones to cripple Russia's Black Sea Fleet has validated this approach. As NATO integrates autonomy into its defense systems, Kraken is using its newly acquired funds to advance the construction of its unmanned vessel fleet.