UK-based insurtech firm Marshmallow has raised US$90 million in new funding from Portage, BlackRock, and Columbia Lake Partners, combining equity and debt investments.
The latest round comes three years after its Series B, during which time the company’s valuation has risen to just over US$2 billion
The funds, sourced from BlackRock and Columbia Lake Partners-managed portfolios, will be used to expand Marshmallow’s range of products and support its plans to enter new international markets
The announcement follows a period of business growth. Marshmallow, which provides car and van insurance for individuals who have relocated to the UK, has now insured more than 1 million drivers and reports an annualised turnover of over US$500 million.
Known as one of the first Black-owned UK unicorns, Marshmallow was founded to address the challenges faced by immigrants and expats in obtaining fair car insurance in the UK. It was ranked as the second fastest-growing company in Europe in 2023, with a compound annual growth rate of 660%.
In 2023, Marshmallow reported a 75% increase in turnover, reaching £184 million. This growth was accompanied by a substantial reduction in losses, decreasing from £16.1 million to £208,000.
Marshmallow noted its intention to continue using its proprietary technology and customer data to address financial challenges faced by newcomers to the UK, particularly the disparity in insurance pricing compared to UK-born individuals. The company plans to broaden its services to address a wider set of financial needs and aims to become a full-service provider for people who move to the UK.
International expansion is also part of the company’s agenda. Marshmallow said that it intends to roll out financial services to individuals who have relocated globally, extending its offering beyond its current UK-focused insurance products.
Co-CEO and co-founder Oliver Kent-Braham (pictured above) said that while Marshmallow has already served over 1 million customers in the UK, broader financial challenges remain for those who are new to a country. The new capital will support efforts to address these issues.
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