U.K. Insurtech Marshmallow Raises $90M to Expand Financial Services for Migrants
Marshmallow, the U.K.-based startup revolutionizing car insurance for underrepresented groups, has raised $90 million to fuel its expansion into broader financial services. With a million drivers insured and a profitable annual revenue run rate of $500 million, Marshmallow is now targeting new financial products aimed at immigrants and other underserved populations.
The new funding will be used to extend Marshmallow’s offerings, including lending products, and to build a “one-stop shop” for everything financial and insurance-related that newcomers to the U.K. might need. This could soon include home insurance and loans, with the startup planning to launch its first lending product later this year.
Expanding Beyond Insurance: A Vision for Migrants
CEO Oliver Kent-Braham sees a unique opportunity in migration, particularly as the U.K. recorded 1.2 million migrants in 2024 alone. He believes that helping immigrants integrate into the U.K. includes providing them access to reliable insurance and financial services — tools that are often difficult to access through traditional channels.
“Migration is a huge opportunity,” Kent-Braham said. “We want to help people move and integrate into the U.K. by giving them the financial tools they need to succeed, starting with insurance and expanding from there.”
A Rapidly Growing Business
Since Marshmallow’s last funding round in 2021, the startup’s valuation has more than doubled from $1.25 billion to just over $2 billion. In that time, the company has grown from insuring 100,000 drivers to over a million, with strong customer engagement in cities like London. Marshmallow has invested heavily in marketing, including eye-catching outdoor ad campaigns to build brand recognition.
Portage Capital led the funding round, with participation from BlackRock, Columbia Lake Partners, and existing investors like Passion Capital and Investec. To date, Marshmallow has raised a total of $220 million.
Riding the Insurtech Wave
While the insurtech sector faces challenges — notably WeFox, which has struggled after its $4.5 billion valuation — there are bright spots in the market. Investors are still eager to back companies with strong technology narratives, and Marshmallow has carved out a niche by focusing on data science and AI to disrupt the traditional insurance model. Much like its Polish competitor Ominimo, which has focused on AI-driven risk prediction, Marshmallow leverages cutting-edge technology to better serve its customers.
Diversity as a Strength
Marshmallow’s leadership stands out not just for its innovation but also for its diversity. Oliver Kent-Braham, one of the company’s co-founders, is one of the few Black entrepreneurs in the U.K. to lead a unicorn startup, with Marshmallow being one of only two such companies in the country with Black founders. This focus on diversity and inclusion is also highlighted by Devon Kirk, General Partner at Portage Capital, who said, “We believe that financial services benefit from different perspectives, and this team brings fresh, innovative solutions to longstanding challenges.”
Looking Ahead
As Marshmallow expands its services, it is poised to play a significant role in the future of financial inclusion for migrants in the U.K. By offering products tailored to the specific needs of immigrants, the company is setting itself up to become a key player in both the insurtech and fintech spaces.
With a clear focus on both social impact and business growth, Marshmallow aims to leverage its technological edge to continue its rapid growth and offer vital services to underserved communities in the U.K.
