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Marshmallow, the UK insurance startup for migrants, raises $90M at a $2B+valuation
UK insurance startup Marshmallow raises $90M at a $2B valuation to help migrants with insurance and financial services. The company has insured a million drivers and aims to expand its offerings despite challenges in the insurtech sector. CEO Oliver Kent-Braham believes migration presents opportunities for economic growth and integration.
Key points
- Marshmallow, a UK startup focusing on car insurance for immigrants, raised $90M and is valued at over $2B.
- The company has transitioned from 100,000 insured drivers in 2021 to one million, achieving a $500M annual revenue run rate.
- Funding will be used to expand into additional financial services, including home insurance and loans, aiming to support migrant integration.
- CEO Kent-Braham highlighted the importance of migration for the UK workforce, citing 1.2 million migrants in 2024.
- The funding round was led by Portage Capital with investors like BlackRock and Columbia Lake Partners participating.
- Marshmallow’s success contrasts with WeFox, an insurtech that has faced difficulties, showcasing the volatility in the startup insurance market.
- Diversity in leadership is emphasized, with Marshmallow being one of few unicorns in the UK founded by Black entrepreneurs.
Why it matters
- In 2025, insurtech trends include the rise of data science and AI in risk prediction, which both Marshmallow and emerging startups like Ominimo are utilizing.
- The impact of Brexit on migration patterns in the UK aligns with Marshmallow's growth strategy.
- The increasing focus on diversity and inclusion in leadership positions in tech and finance resonates with Marshmallow's founding team background.
Marshmallow's successful funding round highlights its unique market positioning by catering to underrepresented groups, demonstrating potential for continued growth in the insurtech sector, especially as it integrates more financial services for migrants.