London-based car insurance provider Marshmallow, which specializes in serving individuals who have recently moved to the UK, has announced securing €79.4 million in funding. This latest round comes three years after its Series B and reflects strong growth, with the company nearly doubling its valuation to over €1.7 billion.
The funding round included contributions from Portage, BlackRock, and Columbia Lake Partners. The capital—comprising a mix of equity and debt—will be used to expand Marshmallow’s car insurance product offerings and fuel its ambitions for international growth.
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.”
Marshmallow, a UK-based FinTech company, is on a mission to make life easier and more affordable for those relocating to a new country. Founded in 2017 by twins Alexander and Oliver Kent-Braham, along with software engineer David Goaté, Marshmallow was created to help newcomers to the UK access fair and affordable car insurance.
To date, the company has provided car insurance coverage to over one million customers, with the majority being individuals new to the UK. Achieving unicorn status in 2021, Marshmallow now boasts a turnover run rate exceeding €439 million and a team of 700 employees spread across London and Budapest. The company continues to focus on delivering tech-first financial solutions tailored to the needs of people moving between countries.
Marshmallow believes that immigrants often face unfairly high insurance costs compared to native residents. By leveraging its proprietary technology and customer data, Marshmallow aims to offer better value and more inclusive financial services for this underserved demographic.
With this latest round of funding, Marshmallow plans to broaden its services to address a wider range of unmet financial needs faced by newcomers, aiming to become a comprehensive, one-stop financial services platform for people relocating to the UK.
Looking ahead, Marshmallow also intends to expand internationally, developing and offering financial products for individuals who have moved to countries beyond the UK, furthering its mission to support globally mobile populations.
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.”
