UK fintech Marshmallow has raised $90 million in a Series C funding round led by Portage Ventures, nearly doubling its valuation to over $2 billion.
The investment, a mix of equity and debt, saw participation from BlackRock and Columbia Lake Partners, building on an $85 million Series B investment round back in 2021 that earned the company unicorn status at a $1.25 billion valuation.
This latest funding marks a significant milestone for the insurtech company, positioning it as one of Europe’s high-potential startups.
Founded in 2017 by twin brothers Alexander and Oliver Kent-Braham, alongside software engineer David Goaté, Marshmallow initially focused on providing affordable car insurance to immigrants in the UK, a demographic often underserved by traditional insurers due to limited credit or driving history.
By leveraging data science and proprietary technology, the company has insured over one million drivers and achieved a turnover run rate exceeding $500 million.
Its mission-driven approach addresses the financial barriers faced by newcomers, offering fairer pricing and accessible services.
The new capital will fuel Marshmallow’s growth plans, including diversifying its product offerings and pursuing international expansion.
The fintech aims to evolve into a “one-stop financial shop” for expats globally, extending beyond its UK-focused car insurance roots.
Planned initiatives include introducing home insurance, motor finance, and lending products tailored to the needs of migrants in markets like the US, Canada, and Germany.
Co-CEO Oliver Kent-Braham said:
“Our ambition is to become a one-stop-financial-shop for newcomers so they feel as though it’s easy to move to, and live in, a different country.”
Marshmallow’s growth comes at a time when many fintechs face valuation challenges amid economic uncertainty.
Its ability to nearly double its valuation reflects strong investor confidence in its innovative model and experienced leadership.
With 700 employees across London and Budapest, Marshmallow is hiring to support its expansion.
As it scales, the company remains committed to its mission of dismantling financial barriers for migrants, setting a blueprint for inclusive fintech innovation worldwide.