Marshmallow has raised around £68m funding from Portage, BlackRock and Columbia Lake Partners to almost double its valuation to more than £1.5bn.
The investment, a mixture of equity and debt, comes three years after the business’ Series B round.
It will be used to further grow the InsurTech business’s product offering and support plans for international expansion.
Focused on providing car and van insurance to those who have moved to the UK, Marshmallow has now insured over a million drivers and has a turnover run rate of over $500m.
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 says it will continue to leverage its proprietary technology and rich customer data to do so.
Marshmallow will 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.
“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,” said Oliver Kent-Braham, co-CEO and co-founder of Marshmallow.
“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.”
Ageas acquires Surrey-based esure for £1.3bn in landmark deal