Marshmallow secures $90M at a valuation of $2 billion
UK fintech, Marshmallow, announces that it has raised $90 million worth of funding from Portage, BlackRock, and Columbia Lake Partners. The raise comes three years after the business’ Series B, in which time, it has almost doubled its valuation to just over $2 billion.
The investment, a mixture of equity and debt, from funds managed by BlackRock and CLP, will be used to further grow the business’ product offering and support plans for international expansion. The successful fundraise follows a period of impressive and sustained growth. Focused on providing car and van insurance to those who have moved to the UK, Marshmallow has now insured over one million drivers and has a turnover run rate of over $500 million, making it one of the largest fintechs in Europe.
People who move to the UK continue to unfairly face higher prices compared to those born in the country. Marshmallow has been focused on providing better value to these customers and will continue to leverage its proprietary technology and rich customer data to do so. Following this fundraise, the business will expand its proposition to support newcomers across a wider range of unmet financial needs, becoming the one-stop financial services provider for people moving to the UK.
Marshmallow will also seek to expand its proposition internationally, with the business planning to offer financial products to people who have relocated to other countries, extending beyond serving just those who have moved to the UK.
Oliver Kent-Braham, Co-CEO and Co-Founder of Marshmallow, said: “Our ambition is to become a one-stop-financial-shop for newcomers so they feel as though it’s easy to move to, and live in, a different country. We’ve already supported over one million people in the UK with their insurance needs, but we’re only just scratching the surface. There are still major financial services barriers that make it harder for newcomers to settle and take part in everyday life. This funding gives us the capital to solve these problems and deliver against our mission.”
Devon Kirk, General Partner & Co-Head, Portage Capital Solutions, commented: “Marshmallow is a clear leader in innovating to solve important financial challenges for consumers. We are confident in the business’ ability to continue developing solutions for a fairer financial ecosystem, and we are excited to support this strong team as it enters its next stage of growth.”
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