Marshmallow company profile: valuation, funding & revenue

This Marshmallow company profile covers the company's valuation, revenue, funding rounds, investors and history. Marshmallow works in insurtech, with a focus on car insurance. It was founded in 2017 and is headquartered in London, England, United Kingdom. Its latest valuation on record is More than US$2 billion (April 2025). Every figure links to a public source, and anything the company hasn't disclosed is marked as such.

Revenue

Funding history

Marshmallow timeline

Key dates from the sources on this page, oldest first. Metric snapshots are listed after the funding events.

• 2017 — Marshmallow is founded in London by Alexander Kent-Braham (CEO), Oliver Kent-Braham and David Goaté.
• Sep 2021 — Series B: About US$85M, valuing the company at More than US$1B.
• Apr 2025 — Equity and debt: US$90M, valuing the company at More than US$2B. Investors: Portage (lead); BlackRock, Columbia Lake Partners.
• April 2025 — Drivers insured: About 1 million drivers insured (as reported).

Investors

Overview

Marshmallow is a UK car insurance company that grew by serving drivers whom traditional insurers often priced poorly, especially people who have recently moved to the UK and lack a UK driving or credit history. Instead of treating newcomers as high-risk by default, it uses alternative data, such as driving experience abroad, to price their risk more accurately, and it has since expanded to serve UK drivers more broadly. Customers buy and manage policies through its app and website. In April 2025 it raised US$90 million in equity and debt, led by Portage with BlackRock participating, which Bloomberg reported nearly doubled its valuation to more than US$2 billion.

Twin brothers Alexander and Oliver Kent-Braham and David Goaté founded Marshmallow in London in 2017. The founders saw how expensive car insurance was for many people new to the UK.

Products

• Car insurance: comprehensive and other cover for UK drivers, with pricing that considers international experience.
• Digital policy management: app-based purchase, changes and documents.
• Claims service: digital claims with support from in-house and partner teams.
• New lines: plans announced in 2025 to expand into categories such as home insurance and lending.

Funding

Marshmallow raised early funding from investors including Passion Capital, Investec and Outrun Ventures. In 2021 it raised a Series B of about US$85 million that made it a unicorn. In April 2025 it raised US$90 million in a mix of equity and debt, led by Portage with BlackRock and Columbia Lake Partners participating, and Bloomberg reported that the deal nearly doubled its valuation to more than US$2 billion. The company said it would use the funds to expand beyond car insurance.

Business model

Marshmallow earns revenue from insurance premiums and related fees, and its profitability depends on pricing accuracy, claims costs and operating efficiency. It has worked to take on more of the underwriting of its own policies over time rather than only acting as a broker for other insurers. Reinsurance partners share some of the risk. Reports in 2025 described the business as having reached a profitable revenue run rate, though we haven't verified a precise figure.

Competition

Marshmallow competes with large UK motor insurers such as Admiral, Aviva, Direct Line and LV=; with price comparison websites that channel many customers; and with other insurtechs such as Zego and By Miles. Its niche in serving newcomers and its data-driven pricing differentiate it.

Marshmallow at a glance

Marshmallow is a London car insurance company founded in 2017 by Alexander and Oliver Kent-Braham and David Goaté. It prices insurance for drivers new to the UK more fairly using alternative data and has broadened to UK drivers generally. It raised US$90 million in equity and debt in April 2025, led by Portage with BlackRock, at a valuation reported at more than US$2 billion.

Timeline

• 2017: founded in London.
• 2020: grows rapidly with newcomers to the UK.
• 2021: raises a Series B and becomes a unicorn.
• April 2025: raises US$90 million at more than US$2 billion.

Why newcomers pay more for insurance

Insurers price car insurance using factors such as driving history, claims records, age, location and sometimes credit information. People who have recently moved to a country often lack local records, so traditional insurers may treat them as unknown and therefore risky, charging much higher premiums even if they have years of safe driving abroad. Marshmallow's insight was that this group was being mispriced: by considering foreign driving experience and other data, it could offer fairer prices and still make money. That approach helped it grow quickly among the UK's large migrant population.

UK motor insurance pressures

UK car insurance premiums rose sharply in 2023 and 2024 as repair costs, parts prices and claims inflation increased. Insurers raised prices to restore profitability, and regulators have scrutinised pricing practices, including rules banning "price walking", where existing customers paid more than new ones for the same cover. These pressures affect all motor insurers and make accurate pricing and efficient claims handling even more important.

Who funds Marshmallow

Marshmallow's investors include Portage, a fintech-focused investor, BlackRock, Columbia Lake Partners, Passion Capital, Investec and Outrun Ventures.

Who uses Marshmallow

Marshmallow's customers include drivers who have moved to the UK and, increasingly, UK drivers more broadly who buy insurance online.

Valuation context

Marshmallow's valuation nearly doubled in 2025, unusual among insurtechs after the sector's correction. Our guide to insurtech startups compares it with peers.

Risks

• Claims inflation: rising repair costs pressure margins.
• Competition: large insurers and comparison sites dominate distribution.
• Expansion risk: new insurance lines and lending require new expertise.
• Regulation: FCA rules on pricing and customer treatment.

Questions for drivers

• Does your previous driving experience abroad count toward pricing?
• What excess applies, and what does the policy cover?
• How are claims handled and how quickly?

How Marshmallow prices risk

Traditional car insurance pricing relies heavily on UK-specific records, such as claims history in the UK insurance database. Marshmallow adds other information that helps predict risk for people without long UK histories, such as how many years they have been driving abroad and other data points, and uses its own claims experience to refine pricing over time. For customers, the result can be significantly lower premiums than they would be quoted elsewhere. For Marshmallow, the challenge is to keep pricing accurate as it grows and as its customer base broadens beyond newcomers.

Expanding beyond car insurance

Marshmallow said its 2025 funding would support expansion into new categories such as home insurance and lending. Its existing customers, many of whom are building financial lives in the UK, may need other products, giving Marshmallow an opportunity to grow revenue per customer. Each new product brings different risks and regulatory requirements, however.

Latest developments (October 2026)

Our October 2026 review found no new funding round for Marshmallow after its April 2025 raise of about US$90 million at a valuation above US$2 billion, according to TechCrunch. The UK insurer said at the time that it insured about a million drivers and planned to expand into lending and home insurance.

What to watch

Watch expansion into home insurance and lending, profitability, and UK motor insurance market conditions.

Takeaways

Drivers new to the UK can get fairer car insurance. Founders can see how serving an overlooked group creates a business. Investors should watch claims inflation and expansion.

Sources

Every figure on this page comes from the public sources below. Where sources disagreed, we used the company's own announcement or a primary news report. Private-company data changes; check the date beside each figure.

1. Bloomberg
2. Coverager