UK-based insurtech startup Marshmallow, known for providing innovative insurance products tailored primarily for migrants and underserved consumers, has successfully raised $90 million at a valuation just over $2 billion. The company has established itself by leveraging advanced data science techniques to design affordable car insurance policies, a market segment traditionally overlooked or dismissed by mainstream insurers.
With approximately one million drivers currently using its products and claims of profitability at an annual revenue run rate of about $500 million, Marshmallow aims to utilize this latest capital injection to expand its business offerings beyond car insurance. CEO Oliver Kent-Braham emphasizes the importance of migration as a driver of economic growth, particularly in the United Kingdom’s increasingly ageing workforce. In 2024 alone, around 1.2 million people migrated to the UK, presenting significant market potential for Marshmallow’s targeted solutions.
The company’s future roadmap includes broadening into home insurance and financial services, starting with its first lending product, scheduled to launch later this year. Kent-Braham envisions Marshmallow to become a comprehensive financial hub—essentially a “one-stop shop”—that can ease transitions for newly arrived migrants integrating into UK society.
This latest round, which comprises a near-even mix of equity and debt, marks a considerable rise from Marshmallow’s previous valuation of $1.25 billion in 2021. Over the past several years, the startup has witnessed dramatic customer growth—from insuring about 100,000 drivers in 2021 to around one million today. Prominent outdoor advertising campaigns, notably visible throughout London, underscore the brand’s rising prominence.
Portage Capital led the investment round, joined by strategic investments from both BlackRock and Columbia Lake Partners. Existing investors include Passion Capital, Investec, and Scor. To date, Marshmallow has raised approximately $220 million, highlighting sustained investor confidence.
The funding round occurs amidst contrasting fortunes for insurance startups across Europe. While WeFox, a major SoftBank-backed competitor that previously reached valuations of $4.5 billion, has struggled with profitability issues and restructuring, others such as the Polish insurtech Ominimo are securing sizeable investments thanks to sustainable growth and sophisticated use of AI-driven technologies.
Distinctively, Marshmallow’s success stems not only from technological competitiveness but also from its purposeful commitment to inclusivity and diversity. Founded by identical twins Oliver and Alexander Kent-Braham together with co-founder David Goaté, Marshmallow stands out in a sector often criticized for insufficient diversity at its leadership ranks. Indeed, Marshmallow represents just one of two UK unicorn startups founded by Black entrepreneurs, the other being WorldRemit. Globally, startups with valuations over $1 billion led by Black founders comprise only about 3% in the US and UK markets combined, a stark statistic Marshmallow hopes to help change.
Investors have particularly recognized and embraced this aspect of Marshmallow’s strength, seeing diversity in leadership as a clear advantage, especially when innovative solutions and fresh perspectives are increasingly critical for companies operating in financial services.
