London-based insurtech unicorn Marshmallow has announced a new funding round of $90 million to accelerate its international expansion plans.
Portage Capital led the round, which included participation from BlackRock and Columbia Lake Partners. The company’s previous backers have included Passion Capital, Investec, and Scor.
Marshmallow will use this new funding to expand its product offering, continue investing in technology, and enter new markets.
Marshmallow’s Unique Approach to Underserved Markets
Marshmallow was founded in 2017 by twin brothers Oliver and Alexander Kent-Braham and David Goaté. The London-based fintech is a car insurance company focusing on UK immigrants.
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The fintech focuses on users 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 and tech-driven alternatives.
The company employs a sophisticated underwriting model beyond basic demographics like age and nationality. It uses advanced data science and machine learning to deliver more personalized 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 Its digital-first platform streamlines the customer journey, from quote to claim, removing outdated paperwork and bureaucracy.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 full online management through its app or portal. In 2021, Marshmallow made history by becoming Britain’s first black-owned unicorn. While many insurance companies struggle to scale or hit profitability, Marshmallow stands out for its sustained growth, tech innovation, and commitment to social equity.
The company isn’t just chasing market share but building a more inclusive fintech ecosystem by addressing a real pain point—the financial exclusion of immigrants and underserved groups.
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Next Step of Taking Giant Strides For Marshmallow
Since its launch, Marshmallow has insured over 1 million drivers, most of whom are newcomers to the UK. It has grown its team to 700 employees in London and Budapest. The Financial Times recognized the London-based startup as the second-fastest growing company in Europe in 2023.
This latest raise combines equity and debt and nearly doubles Marshmallow’s valuation to over $2 billion. It has raised around $220 million to date, further cementing its status as one of the biggest players in Europe’s fintech landscape.
Oliver Kent-Braham, Co-CEO and Co-Founder of Marshmallow, said in a press release seen by UrbanGeekz: “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.”
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The startup will also use the investment to grow internationally, supporting people who’ve relocated not just to the UK but around the world.
It’s notable that Marshmallow’s investors see particular strength precisely because of its diverse leadership at a time when diversity, equity and inclusion programs are being dismantled in the U.S.
Main Image: Oliver Kent-Braham, Alexander Kent-Braham and David Goaté, Marshmallow’s co-founders. Image Credit: Marshmallow
The post Britain’s First Black-owned Unicorn Marshmallow Attains $2B Valuation with $90M Funding appeared first on UrbanGeekz.
