London-based insurtech unicorn Marshmallow has announced a new funding round of $90 million, backed by prominent investors, including Portage, BlackRock, and Columbia Lake Partners (CLP). This latest raise is a combination of equity and debt and nearly doubles its valuation to over $2 billion. With this, Marshmallow further cements its status as one of the biggest players in Europe’s fintech landscape.
This investment comes three years after the company’s Series B and two years after securing a £15 million revolving credit facility from Triple Point Private Credit, a major non-bank lender in the UK (also known for backing Bike Club).
With this significant investment, the company plans to use the funds to expand its product offering and accelerate international expansion, aiming to become a one-stop financial services provider for people moving across borders. This includes not only strengthening its UK services but also launching financial products tailored to the needs of newcomers globally, a move that broadens its mission well beyond British borders.
A unique approach to the underserved market
Marshmallow’s primary focus remains on those who are often neglected by traditional insurers: immigrants, young drivers, and those with non-standard credit histories. These individuals frequently face inflated premiums or outright rejection. Marshmallow stands apart by offering fairer, tech-driven alternatives.
The company employs a sophisticated underwriting model that goes beyond basic demographics like age and nationality. It uses advanced data science and machine learning to deliver more personalised and accurate risk assessments, resulting in fairer pricing. Its digital-first platform streamlines the customer journey, from quote to claim, removing outdated paperwork and bureaucracy.
In addition, transparency and clarity are baked into every step, with simple policy terms and fully online management through its app or portal.
Britain’s first black-owned unicorn
In 2021, Marshmallow made history by becoming Britain’s first black-owned unicorn, co-founded by twins Alexander and Oliver Kent-Braham, alongside engineer David Goaté. The trio launched the company in 2017 with a vision to disrupt an unfair system and help newcomers get a better deal on essential services like car insurance.
While many insurtech companies are struggling to scale or hit profitability, Marshmallow stands out for its sustained growth, tech innovation, and commitment to social equity. By addressing a real pain point, financial exclusion of immigrants and underserved groups, the company isn’t just chasing market share, but building a more inclusive fintech ecosystem.
To date, Marshmallow has:
- Insured over 1 million drivers, most of whom are UK newcomers
- Achieved a $500 million turnover run rate
- Grown its team to 700 employees across London and Budapest
- Been recognised as the second-fastest growing company in Europe by The Financial Times in 2023
What’s next?
Marshmallow is a digital-first disruptor that’s solving real problems with smart technology. Its blend of mission and machine learning positions it uniquely in the fintech space. As it steps beyond the UK, its success could serve as a blueprint for inclusive financial innovation worldwide. It’s not just insuring cars, but reengineering how fairness fits into finance.
Oliver Kent-Braham, Co-CEO and Co-Founder of Marshmallow, said: “Our ambition is to become a one-stop-financial-shop for newcomers so they feel as though it’s easy to move to, and live in, a different country. We’ve already supported over one million people in the UK with their insurance needs, but we’re only just scratching the surface. There are still major financial services barriers that make it harder for newcomers to settle and take part in everyday life. This funding gives us the capital to solve these problems and deliver against our mission.”
Devon Kirk, General Partner & Co-Head, Portage Capital Solutions, commented: “Marshmallow is a clear leader in innovating to solve important financial challenges for consumers. We are confident in the business’ ability to continue developing solutions for a fairer financial ecosystem, and we are excited to support this strong team as it enters its next stage of growth.”
