UK Insurtech Startup Marshmallow Secures $90M Funding to Expand Financial Services and Insurance Products

U.K. startup Marshmallow has raised $90 million to expand its operations after experiencing exponential growth, with a current valuation of over $2 billion. The company, which uses data science to provide car insurance for immigrants and overlooked consumers, plans to move into financial services and expand its insurance products.

Marshmallow is aiming to appeal to the growing population of migrants in the U.K., strategically capitalizing on the opportunities presented by migration. The funding round, led by Portage Capital and with participation from BlackRock and Columbia Lake Partners, will be split evenly between equity and debt.

Notably, the company's strong leadership, including co-founder and CEO Oliver Kent-Braham, has been highlighted as a key strength by investors. Marshmallow's expansion into financial services is expected to include offering lending products later this year, with a vision of becoming a 'one-stop shop' for new arrivals to the U.K. The startup's growth and innovative approach to insurance have set it apart from its competitors, positioning it as a standout player in the European insurtech landscape.