From Powerboat Racer to Defense Unicorn: Inside Kraken Technology Group's $175M Series B

Who Founded Kraken Technology Group and Why?

Kraken Technology Group was founded by Malcolm "Mal" Crease, a former high-performance powerboat racer based in Portsmouth, UK . Crease pivoted from competitive racing to defense during the COVID-19 pandemic after receiving multiple inquiries from the defense industry about adapting his high-speed hull designs for military use. The initial spark came from the emergence of low-earth-orbit satellites, which enabled remote drone control, but the urgency grew as operations in Ukraine highlighted the necessity for rapid, scalable drone deployment . The company is headquartered in Fareham, UK .

Who Invested in the $175M Series B?

The Series B round was led by DTCP Defence, the defense arm of Digital Transformation Capital Partners (based in Hamburg and Fareham) . Other disclosed investors include Rheinmetall, the German defense group, and the NATO Innovation Fund . The UK’s National Security Strategic Investment Fund (NSSIF) has also been a previous investor, alongside the British Business Bank . Earlier backers include German shipbuilder NVL Group, which already invested in Kraken and holds options to join further rounds .

Military Uncrewed Surface Vessel (USV) Products

K3 SCOUT — The company’s flagship operational USV, built on a high-performance twin-stepped composite hull .

• Dimensions: 8.4 m length, 1.93 m beam, 0.8 m draft, 2,500 kg max displacement .
• Powertrain: Inboard diesel with stern drive, reaching a top speed of 55 knots (~102 km/h) .
• Range & endurance: 650 nautical miles at 25 knots; up to 30 days mission endurance .
• Payload: 600 kg modular bay; configurable for ISR, surveillance, critical infrastructure protection, logistics, or as a weapons platform .
• Autonomy: Fully autonomous, operates beyond visual line of sight .

K50 "KRAKEN" Precision Engagement Craft — A larger, heavily armed offensive platform designed for high-speed precision engagement.

• Speed: 65+ knots fully laden .
• Armament: Integrated through partnerships with Thales (sensors, C2, communications), MSI-Defence Systems (Seahawk weapon station, Martlet missile launcher), and Leonardo (Black Scorpion mini-torpedo) .
• Mission profile: Coastal interdiction, critical offshore infrastructure protection, swarm operations, and anti-surface warfare .

Recent Defense Contracts

Global Manufacturing Expansion Plans

The Series B funding is explicitly designated to scale international manufacturing . Key moves already underway:

• NVL Joint Venture (Germany): Kraken partnered with German shipbuilder NVL Group in August 2025 to co-develop and produce USVs at NVL’s Blohm+Voss shipyard in Hamburg, including a potential "drone mothership" solution for the German Navy . Initial capacity is set at around 200 units per year, scalable to 1,000 depending on order flow .
• Rheinmetall collaboration: Rheinmetall showcases and co-markets the K3 Scout internationally, including at Eurosatory 2026, enabling broader European and NATO distribution .
• UK production base: Kraken already manufactures in the UK; the funding will further expand its domestic facility capacity .