Marshmallow: UK Fintech Secures $90 Million Funding at $2 Billion Valuation
Deal News | Apr 15, 2025 | Portage Invest
UK-based fintech company Marshmallow has secured $90 million in new funding from a round led by Portage, with participation from BlackRock and Columbia Lake Partners. The investment, which includes both equity and debt contributions, raises Marshmallow's valuation to just over $2 billion, effectively doubling it since the Series B round three years ago. The funds will be utilized to expand Marshmallow's suite of financial products and launch into new international markets. The company, which offers car and van insurance primarily to those newly relocated to the UK, aims to broaden its customer base to other countries. Since its inception in 2017, Marshmallow has leveraged proprietary technology to offer competitively priced insurance to over one million drivers. The fresh capital will allow Marshmallow to further its mission of easing financial barriers for newcomers to the UK and potentially other markets in the future.
Sectors
- Fintech
- Insurance
Geography
- United Kingdom – Marshmallow is a UK-based company offering car and van insurance solutions tailored for newcomers to the UK.
- Europe – Marshmallow is one of the largest fintechs in Europe; the funding from Portage will also support its international expansion across Europe.
- United States – Portage operates in the United States, showcasing a broad geographic interest in its investment strategy.
Industry
- Fintech – The article discusses a funding round for Marshmallow, which is focused on providing technology-driven financial services solutions, a core aspect of fintech.
- Insurance – Marshmallow primarily offers car and van insurance to people who have moved to the UK, positioning it squarely within the insurance sector.
Financials
- $90 million – The amount raised by Marshmallow in the latest funding round.
- $2 billion – Marshmallow's current valuation following the new investment round.
- $500 million – The turnover run rate achieved by Marshmallow, highlighting its financial growth.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Marshmallow | Target Company | Company | A UK-based fintech focused on providing insurance solutions for newcomers to the UK. |
| Portage | Investor | Company | A global investment platform focused on fintech and financial services, with active operations in the US, Canada, and Europe. |
| BlackRock | Investor | Company | A participant in the funding round, it is one of the world’s largest asset managers. |
| Columbia Lake Partners | Investor | Company | Part of the investment consortium providing equity and debt funding to Marshmallow. |
| Oliver Kent-Braham | Co-CEO and Co-Founder of Marshmallow | Person | One of the founders and current leaders of Marshmallow, focusing on their expansion and strategic goals. |
| Devon Kirk | General Partner & Co-Head, Portage Capital Solutions | Person | Key figure at Portage, representing the firm's investment strategy and collaborative approach with its portfolio companies. |