Marshmallow, a London-based motor insurer that caters to newcomers to the UK, has successfully raised €79.4 million in funding, marking a major milestone for the company. This follows three years after its Series B round and has nearly doubled its valuation to over €1.7 billion.
The latest funding round included investment from Portage, BlackRock, and Columbia Lake Partners. The investment, a combination of equity and debt, will enable Marshmallow to expand its product offerings and further its international growth plans.
Oliver Kent-Braham, Co-CEO and Co-founder of Marshmallow, commented: “Our ambition is to become a one-stop financial shop for newcomers, making it easier to move to and live in a different country. We’ve already helped over one million people in the UK with their insurance needs, but we’re only scratching the surface. There are still major financial barriers that make it harder for newcomers to settle and participate in everyday life. This funding will give us the resources to solve these problems.”
Founded in 2017 by twins Alexander and Oliver Kent-Braham, along with software engineer David Goaté, Marshmallow was designed to help people who have recently moved to the UK with their car insurance needs. The company has since grown rapidly, serving over one million customers, most of whom are newcomers to the UK. Marshmallow achieved unicorn status in 2021 and has a turnover run rate exceeding €439 million. With 700 employees across London and Budapest, the company’s focus is on offering tech-first financial products for people moving to a new country.
Marshmallow’s mission is to provide affordable insurance for people who often face higher costs than native UK residents. The company plans to expand its financial services beyond insurance, aiming to become the go-to provider for newcomers in the UK. Following this funding round, the company also plans to expand its reach to international markets, providing similar services to those who relocate to other countries.
Devon Kirk, General Partner & Co-Head at Portage Capital Solutions, expressed confidence in Marshmallow’s ability to solve significant financial challenges, saying: “Marshmallow is a leader in innovating solutions for a fairer financial ecosystem, and we are excited to support this strong team as it enters its next phase of growth.”
Marshmallow’s expansion plans reflect its ambition to solve key financial problems faced by people who move to new countries, continuing to leverage its proprietary technology and customer data.
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