In a significant win for the UK’s tech ecosystem, London-based insurtech startup Marshmallow has raised a fresh $90 million, pushing its valuation to an impressive $2 billion. Not bad for a company that only launched in 2017 with a mission to make insurance fairer for everyone.
Founded by identical twins Alexander and Oliver Kent-Braham and David Goate, Marshmallow was born out of frustration with traditional insurance models. The team set out to provide affordable car insurance to underserved groups, such as immigrants and expats, who are often penalized by legacy risk models. Instead of relying on outdated systems, Marshmallow developed its own tech and data-driven pricing engine to bring more fairness to the industry.
The new funding round was led by existing backers, including Passion Capital and Investec, signaling continued confidence in Marshmallow’s disruptive potential. With this capital injection, the company plans to expand into new insurance verticals, enter international markets, and further develop its proprietary technology.
What’s remarkable is Marshmallow’s journey to unicorn status without the typical heavy reliance on early venture capital. In 2021, they raised $85 million at a $1.25 billion valuation, and their trajectory has only strengthened since. In a climate where many tech startups are facing turbulence, Marshmallow’s steady growth is a testament to its solid business fundamentals and mission-driven approach.
Commenting on the milestone, co-CEO Alexander Kent-Braham said:
“We started Marshmallow to address real inequalities in the insurance market. This new funding allows us to double down on our mission and bring more innovative products to more customers across the world.”
The insurtech space is buzzing with attention-grabbing names like Lemonade and Hippo, but Marshmallow has carved out a unique identity. By prioritizing underserved customers and building technology from the ground up, the company has differentiated itself in a crowded field.
With a fast-growing customer base and bold international ambitions, Marshmallow is undoubtedly one to watch. If the company can continue scaling thoughtfully while staying true to its founding mission, it could very well become a major global force in the insurance industry.
One thing is clear: the future of insurance is being rewritten, and Marshmallow is at the center of that transformation.
