Marshmallow Secures €79.4 Million Funding for International Expansion
Marshmallow, an innovative automobile insurer based in London, has successfully raised €79.4 million in the latest funding round. This announcement comes three years after their Series B funding, during which the company nearly doubled its valuation to over €1.7 billion.
Funding Participation and Utilization
The funding round, which included significant participation from Portage, Blackrock, and Columbia Lake Partners, comprises a blend of equity and debt. Marshmallow plans to utilize this investment to enhance its product offerings and support its ambitious international expansion plans.
Building a Comprehensive Solution for Newcomers
Oliver Kent-Braham, Co-CEO and co-founder of Marshmallow, expressed the company’s vision: “Our ambition is to become a one-stop shop for newcomers, ensuring that they feel at home as they adapt to life in a new country. We have already supported over a million individuals in the UK with their insurance needs, but we are just scratching the surface.”
Founded to Simplify Relocation
Founded in 2017 by twins Alexander and Oliver Kent-Braham alongside software engineer David Goaté, Marshmallow aims to simplify the car insurance process for individuals relocating to the UK. With its mission to enhance the affordability and accessibility of financial services, the company has quickly gained traction in the market.
Significant Growth and Impact
Today, Marshmallow boasts more than one million customers, primarily comprising new arrivals in the UK. Achieving unicorn status in 2021, the company reported an annual revenue execution rate exceeding €439 million and employs around 700 individuals across its offices in London and Budapest.
Addressing Financial Disparities
Marshmallow recognizes that newcomers to the UK often face higher insurance costs than those born in the country. By leveraging advanced technology and customer data, Marshmallow aims to provide better value and tailored services to meet the unique financial needs of these individuals.
Future Plans for Financial Services Expansion
With this latest funding, Marshmallow is poised to broaden its product offerings, addressing a wider array of financial needs for newcomers. The company seeks to position itself as a leading provider of financial services for individuals relocating not only to the UK but also beyond its borders.
Investor Confidence in Marshmallow’s Vision
Devon Kirk, General Partner and Co-CEO at Portage Capital Solutions, commented on Marshmallow’s potential: “Marshmallow is at the forefront of innovation in addressing significant financial challenges faced by consumers. We believe in the company’s ability to develop equitable financial solutions and are excited to support this ambitious team as they enter a new growth phase.”