Introduction Of Marshmallow
Marshmallow, the UK-based insurtech known for designing car insurance policies for immigrants and underserved communities, has secured $90 million in new funding, pushing its valuation to just over $2 billion. This marks a significant leap from its last funding round in 2021, when it was valued at $1.25 billion.
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The London-headquartered startup now insures over 1 million drivers and reports a profitable annual revenue run rate of $500 million. The fresh capital will support Marshmallow’s move into broader financial services and additional insurance products, aimed at customers often overlooked by traditional providers.
From Car Insurance to Comprehensive Financial Services
Co-founder and CEO Oliver Kent-Braham sees migration not as a challenge, but an opportunity. With net migration to the UK hitting 1.2 million in 2024, Marshmallow’s mission is focused on helping new arrivals integrate more easily — starting with access to car insurance and soon extending to home insurance and personal lending.
“We think of migration as a huge opportunity,” Kent-Braham said. “The UK has more people leaving the workforce than entering it. We need migration to keep the economy moving, and we want to support that transition with accessible financial products.”
Marshmallow plans to debut its first lending product later this year, positioning itself as a “one-stop shop” for migrants and newcomers navigating life in a new country.
Strategic Investment and Sustainable Growth
The latest round is evenly split between equity and debt, and was led by Portage Capital with participation from BlackRock and Columbia Lake Partners. Previous investors include Passion Capital, Investec, and Scor. In total, Marshmallow has raised approximately $220 million.
Some of the funding dates back to 2023 in the form of convertible debt, with the full round coming together over the past several months.
The investment arrives at a pivotal moment for European insurtechs. While companies like WeFox — once valued at $4.5 billion — have struggled with losses and business model complications, others, like Poland’s Ominimo, are proving that profitable, tech-driven growth is achievable. Marshmallow sits squarely in the latter camp, with its use of data science and AI placing it ahead of more traditional insurers.
Built on Diversity and Inclusion
What truly sets Marshmallow apart is its commitment to inclusivity — both in its customer base and leadership. The company was founded by twin brothers Oliver and Alexander Kent-Braham, along with David Goaté, and is one of only two UK unicorns led by a Black founder. The other is WorldRemit.
This rarity is not lost on its backers. “This is a very strong founding team,” said Devon Kirk, General Partner at Portage Capital Solutions. “We believe the financial services industry benefits from diverse perspectives and leaders who bring fresh ideas to long-standing challenges.”
At a time when diversity, equity, and inclusion efforts are under pressure in some markets, Marshmallow’s success offers a powerful counter-narrative: that inclusive innovation not only drives profit but also builds resilience and relevance in a changing world.
