Twins Raise $90M For Their Insurance Unicorn That’s Now Valued At $2B
Marshmallow, a British fintech startup aiming to make insurance cheaper, faster, and fairer, has raised $90 million in equity and debt funding. The funding round, led by Portage Capital, will support the company’s expansion into new markets and products amid a growing migrant population.
“We think of migration as a huge opportunity. We need migration to put more people into work, and we want to help people move and integrate into the UK,” CEO Oliver Kent-Braham told TechCrunch.
The raise nearly doubles Marshmallow’s valuation to $2 billion. New investors include BlackRock, Columbia Lake Partners, and Portage, joining earlier backers like Passion Capital, Investec, and Scor.
Making insurance fairer
In 2017, identical twins Oliver and Alexander Kent-Braham, along with engineer David Goaté, founded Marshmallow to provide more affordable car insurance options to individuals outside the traditional “good risk” profile.
“We started Marshmallow when we found out how unfair insurance prices are for people who move to the UK. Purely because the industry hasn’t given this huge cohort of people a second thought, and isn’t set up to price them properly,” the company’s website says.
Marshmallow’s underwriting model goes beyond demographics like age and nationality. It uses advanced data science and machine learning to create more customized and accurate risk assessments.
Initially focused on car insurance, Marshmallow updated its mission statement in September 2021 to emphasize its commitment to reducing distress caused by accidents and disasters while investing in technology to prevent them.
A $2 Billion Valuation
In 2021, Marshmallow achieved unicorn status with a valuation exceeding $1 billion through a $85 million Series B funding round. Bloomberg reports that Marshmallow’s previous round was three years ago.
So far, the firm has insured 1 million drivers and said it has a turnover run rate of over $500 million. It has 700 employees based in London and Budapest and is hiring more, including engineers, analysts, and motor claims handlers.
Image: Marshmallow
