Marshmallow, a London-based motor insurer for people who have recently emigrated to the UK, has raised €79.4 million in funding. This follows a Series B round three years ago, during which the company’s valuation nearly doubled to over €1.7 billion.
The funding round was backed by Portage, BlackRock, and Columbia Lake Partners.
The capital, a combination of equity and debt, will help Marshmallow expand its product range and support plans for international growth.
Oliver Kent-Braham, Co-CEO and Co-founder of Marshmallow, stated:
“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.”
Founded in 2017 by twins Alexander and Oliver Kent-Braham and software engineer David Goaté, Marshmallow began with a focus on providing car insurance for newcomers to the UK.
The company now has over one million customers, primarily UK immigrants.
It achieved unicorn status in 2021 and has a reported turnover run rate of over €439 million.
Marshmallow employs 700 people across its offices in London and Budapest, aiming to offer a range of tech-driven financial products to support people moving to new countries.
The company contends that immigrants to the UK face higher prices for financial services compared to UK-born residents.
Marshmallow plans to use its technology and customer data to provide more affordable solutions for this group.
Following this new funding, Marshmallow aims to expand its offerings to address other unmet financial needs of newcomers and plans to broaden its services to international markets, helping those who have relocated to other countries.
Featured image credit: edited from freepik
