British insurance unicorn Marshmallow is close to securing a significant capital injection that would value the company at more than £1.5bn, marking a major milestone despite ongoing challenges in the technology funding landscape.
The insurtech firm is in advanced negotiations to raise tens of millions of pounds in its first substantial equity round in over three years. Canadian fintech investor Portage Capital has been in discussions to lead the fundraising, while Perella Weinberg Partners has been advising Marshmallow throughout the process. If finalised, the investment would represent a notable premium over the company’s last valuation in 2021.
Founded in 2015 by twin brothers Oliver and Alexander Kent-Braham alongside David Goaté, Marshmallow has carved out a niche in the insurance market by targeting customers who are often overlooked by traditional insurers, including immigrants and expatriates. The company has gained attention for its use of advanced technology and data-driven models to offer competitive pricing and better coverage options for underserved segments.
Previous investors in Marshmallow include Investec and venture capital firm Passion Capital. The firm has experienced rapid growth, with 2023 revenues reported to have surged by 75%. It now employs over 300 people and continues to expand its customer base.
In addition to its equity fundraising, Marshmallow secured a £15m debt facility from private credit provider Triple Point in May 2023, further strengthening its financial position.
The impending deal highlights investor confidence in the insurtech sector despite broader economic uncertainty. With this new capital injection, Marshmallow is well-positioned to accelerate its expansion, enhance its technology-driven insurance offerings, and solidify its status as one of the UK’s leading fintech success stories.
