UK insurtech raises $90m in latest funding round

UK insurtech Marshmallow has raised £68m ($90m) worth of funding from Portage, BlackRock and Columbia Lake Partners.

The investment, a mixture of equity and debt, will be used to further grow the business’ product offering and support plans for international expansion.

Marshmallow provides car and van insurance to those who have recently moved to the UK, a demographic which the firm says “unfairly face higher prices compared to those born in the country”.

Since its founding, the company has insured over one million drivers in the UK and currently has a turnover rate of £500m.

Valuation

The investment comes three years after the previous round of series B funding, during which time the company’s value has doubled from £1bn to £2bn.

Oliver Kent-Braham, co-founder and co-chief executive at Marshmallow, 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.

“We’ve already supported over one million people in the UK with their insurance needs, but we’re only just scratching the surface.

“There are still major financial services barriers that make it harder for newcomers to settle and take part in everyday life. This funding gives us the capital to solve these problems and deliver against our mission.”