Marshmallow Doubles Valuation with $90m Funding Round
Deal News | Apr 15, 2025 | UK Tech Funding
UK-based insurtech company Marshmallow has successfully raised $90 million in a mix of debt and equity, achieving a valuation of $2 billion. This significant milestone comes three years after it first attained unicorn status with an $83 million Series B round. Marshmallow, which specializes in providing vehicle insurance services to migrants in the UK, has seen its turnover increase by 75% to £184 million. The newly acquired capital will be used to advance product development and support its global expansion strategy. The company envisions transforming into a comprehensive financial platform catering to the needs of migrants worldwide. Portage Capital Solutions, along with BlackRock and CLP, are among the investors providing this new round of funding.
Sectors
- Insurtech
- Financial Technology
Geography
- United Kingdom – Marshmallow is based in the UK and initially focused on providing services to migrants arriving there.
- Global – The company's plans for international expansion and offering services to migrants moving to various countries make it globally relevant.
Industry
- Insurtech – Marshmallow operates within the insurtech industry, focusing on innovative insurance solutions, specifically targeting migrants in the UK with plans to expand globally.
- Financial Technology – The company's goal of becoming a holistic financial platform for migrants categorizes it within the broader financial technology sector.
Financials
- $90 million – The total amount raised by Marshmallow in the latest funding round.
- $2 billion – The valuation of Marshmallow following the latest funding round.
- £184 million – Marshmallow's turnover as per their most recent accounts for 2023.
- 75% – The reported growth in turnover for Marshmallow.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Marshmallow | Target Company | Company | An insurtech firm providing vehicle insurance services, aiming to expand into a comprehensive financial platform for migrants. |
| Portage Capital Solutions | Investor | Company | A capital solutions provider that participated in Marshmallow's funding round. |
| BlackRock | Investor | Company | An investment management corporation involved in Marshmallow's recent funding. |
| CLP | Investor | Company | Funds managed by this entity participated in the funding round for Marshmallow. |
| Oliver Kent-Braham | Co-founder and Co-CEO | Person | Co-founder and co-CEO of Marshmallow, instrumental in steering the company’s vision and expansion plans. |
| Devon Kirk | General Partner | Person | General Partner at Portage Capital Solutions, involved in the investment decision for Marshmallow. |