London-based Marshmallow, an insurtech unicorn, has raised $90M (approximately €79M) combination of equity and debt) in a funding round at a $2B (approximately €1.7B) valuation.
The funding round was led by Portage Capital, with participation from BlackRock, and Columbia Lake Partners (CLP). The latest round brings the total funding received to around $220M (approximately €193M) to date.
Based out of Toronto, Portage is a global investment platform focused on fintech and financial services.
Devon Kirk, General Partner & Co-Head, Portage Capital Solutions, adds: “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.”
The announcement comes three years after raising $85M (approximately €75M) in a Series B round.
The company plans to use the funds to expand into financial services and offer more insurance products.
“We think of migration as a huge opportunity,” says, CEO Oliver Kent-Braham said in an interview with TechCrunch.
He noted that in the U.K., more people are coming out of the workforce than there are going in, with 1.2M migrants recorded coming to the U.K. in 2024 alone.
“We need migration to put more people into work, and we want to help people move and integrate into the UK,” adds Braham.
Marshmallow: Car insurance for immigrants
Founded in 2017 by twins Alexander and Oliver Kent-Braham and software engineer David Goaté, Marshamallow focuses on car insurance for immigrants and underserved populations.
Currently, the company claims to insure one million drivers and reports an annual revenue run rate of $500M.
Oliver Kent-Braham, Co-CEO and Co-Founder of Marshmallow, says, “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 service 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.”
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