Marshmallow, a London-based insurtech startup known for creating car insurance products tailored for immigrants and underserved consumers, has secured $90 million in fresh funding, pushing its valuation beyond $2 billion.
The round brings Marshmallow’s total capital raised to around $220 million.
With over 1 million drivers insured and a $500 million revenue run rate, Marshmallow plans to use the new funding to expand into financial services and new insurance products. The startup is on track to launch its first lending product later this year, moving closer to its goal of becoming a comprehensive financial services platform for newcomers to the UK.
“We see migration as a major opportunity,” said CEO Oliver Kent-Braham. “The UK is experiencing workforce shrinkage, and migration is essential. We want to support people as they move and integrate.”
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Backing and Structure of the Deal
The funding round is split evenly between equity and debt, with participation from:
- Portage Capital (lead investor)
- BlackRock
- Columbia Lake Partners
Previous backers include Passion Capital, Investec, and Scor. Notably, part of the equity came from convertible debt raised in 2023.
From Underdog to Industry Leader
Founded by identical twins Oliver and Alexander Kent-Braham, along with David Goaté, Marshmallow has grown dramatically since its last funding round in 2021, when it was valued at $1.25 billion. Back then, the company had just 100,000 customers. Today, its visibility—especially in major cities like London—is boosted by bold pink marketing campaigns and strong customer adoption.
What sets Marshmallow apart is its data-driven approach, using AI and proprietary actuarial models to serve customers who are often overlooked by traditional insurers. The company’s inclusive mission also reflects in its leadership: Marshmallow is one of the UK’s few unicorns founded by Black entrepreneurs, a rarity both locally and globally.
“We believe that diversity drives innovation,” said Devon Kirk, GP at Portage Capital. “This is a standout team building solutions with real-world impact.”
Industry Context
Marshmallow’s rise comes at a time when some of its European peers, like WeFox, are struggling. Yet others, such as Ominimo (Poland), are proving that sustainable, AI-driven insurtech models are gaining investor confidence.
As Marshmallow broadens its offerings—from car insurance to loans and home coverage—it continues its mission to support the financial integration of migrants, a customer segment it believes is both underserved and increasingly essential to the UK’s future.
