London-based insurtech startup Marshmallow has secured $90 million in new funding, pushing its valuation past $2 billion, as the company expands beyond car insurance into lending and broader financial services.
Founded in 2017 by Oliver and Alexander Kent-Braham and David Goaté, Marshmallow built its reputation by offering affordable car insurance to migrants and underserved consumers typically excluded from traditional underwriting models. The startup now insures over one million drivers across the UK and reports an annual revenue run rate of $500 million, having achieved profitability.
Chief Executive Officer Oliver Kent-Braham confirmed that the new round—split evenly between equity and debt—will fund the launch of Marshmallow’s first lending product later in 2025. The company also plans to introduce additional insurance offerings, including home insurance, as part of its long-term goal of becoming a “one-stop financial platform” for new arrivals to the UK.
“We view migration as a major economic opportunity,” Kent-Braham said in an interview. “The UK saw 1.2 million migrants arrive in 2024 alone. We want to support that growth by helping people move and integrate through accessible financial products.”
Portage Capital led the latest investment round, which included participation from BlackRock and Columbia Lake Partners. Previous investors in Marshmallow include Passion Capital, Investec, and Scor. To date, the startup has raised approximately $220 million.
The company last raised funding in 2021 at a $1.25 billion valuation. Since then, Marshmallow has experienced significant growth, with brand visibility boosted by a large-scale advertising campaign in cities like London. The company has leaned heavily into data science and AI to improve pricing models and reduce underwriting risk, positioning itself as a technology-first player in the insurance sector.
Marshmallow’s funding comes at a turbulent time for Europe’s insurtech landscape. German rival WeFox, once valued at $4.5 billion, has faced serious financial struggles and asset sales after ongoing losses and business model challenges. In contrast, newer players like Poland’s Ominimo have gained traction by prioritising profitability and tech-driven growth, raising $10 million recently at a $200 million valuation.
While artificial intelligence and data science have become standard across the sector, Marshmallow’s founding story sets it apart. It remains one of just two Black-founded unicorns in the UK, alongside WorldRemit. A 2024 study highlighted that only 3% of billion-dollar startups in the UK and US have Black founders. Investors see this diversity as a key strength.
“This is a very strong founding team,” said Devon Kirk, GP and co-head of Portage Capital Solutions. “We believe financial services benefit from different perspectives — and Marshmallow’s leadership is delivering innovative solutions to real-world problems.”
As Marshmallow accelerates its transition into a multi-product fintech platform, it continues to position itself as a key player for one of the UK’s fastest-growing and underserved demographics — migrants and new arrivals looking for fair, accessible financial tools.
