Marshmallow Accelerates Growth With $90M Raise, Eyes Financial Services Expansion
U.K.-based insurtech Marshmallow has raised $90 million in new funding, pushing its valuation beyond $2 billion as it charts a course into broader financial services. With an annual revenue run rate of $500 million and over 1 million drivers insured, the company continues to disrupt traditional insurance models—particularly for migrants and underrepresented communities.
From Niche Offering to Industry Challenger
Marshmallow has carved a name for itself by using advanced data science to serve those often neglected by mainstream insurers. Migrants and individuals with non-traditional financial histories have long faced barriers in accessing affordable car insurance. Marshmallow’s approach changes that narrative.
CEO Oliver Kent-Braham emphasized the company’s mission in a recent interview:
“We think of migration as a huge opportunity.”
With over 1.2 million migrants arriving in the U.K. in 2024 alone, Marshmallow sees significant potential in helping this growing population integrate through accessible financial products.
“We need migration to put more people into work, and we want to help people move and integrate into the U.K.,” Kent-Braham added.
Diversifying Into Financial Products
This latest funding round will support Marshmallow’s expansion into new verticals—including home insurance and personal lending. A lending product is expected to launch later this year, paving the way for Marshmallow to become a comprehensive financial services platform for newcomers.
“We’re building a one-stop shop for everything financial and insurance that a new arrival to the U.K. might need to adjust to life,” Kent-Braham said.
Strategic Backing and Valuation Growth
The $90 million round is split evenly between equity and debt, with Portage Capital leading the investment. Other participants include BlackRock and Columbia Lake Partners, joining the ranks of prior backers such as Passion Capital, Investec, and Scor.
The company’s valuation has soared from $1.25 billion in 2021 to over $2 billion today. To date, Marshmallow has raised approximately $220 million.
Interestingly, part of the equity portion stems from convertible debt raised in 2023, and this round has been in development since early January.
Insurtech in a Turbulent Market
Marshmallow’s funding success stands out in contrast to other European insurtech players navigating tougher terrain. WeFox, once valued at $4.5 billion, has struggled with profitability and recently sold parts of its business to stay afloat.
In contrast, up-and-comers like Ominimo, a Polish startup, are showing promising signs. The company, which also began in car insurance, secured $10 million from a strategic investor at a $200 million valuation—its first external funding round after achieving profitability while bootstrapped.
Standing Out Through Diversity and Innovation
While many startups focus solely on AI and data science, Marshmallow is also defined by its deep commitment to inclusivity. Founded by twin brothers Oliver and Alexander Kent-Braham along with David Goaté, the company is a rare Black-founded unicorn in the U.K. The only other known example is WorldRemit.
“You could actually be talking to Alexander right now!”, Oliver joked during the interview, highlighting their identical twin status.
Despite the current wave of rollbacks in diversity, equity, and inclusion (DEI) programs—particularly in the U.S.—investors see Marshmallow’s diverse leadership as a strength.
“This is a very strong founding team,” said Devon Kirk, GP and co-head of Portage Capital Solutions.
“We think that financial services benefits from different perspectives and leaders coming up with innovative solutions to address those needs.”
A 2024 study found that only 3% of $1 billion+ startups in the U.K. and U.S. have Black founders, underscoring Marshmallow’s exceptional position.
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