Note: This story originally published a claim from Marshmallow to be the UK’s first black-owned unicorn but was subsequently altered as WorldRemit Group – rebranded as Zepz – has already achieved unicorn status

A tech firm serving cheaper insurance to immigrants, expats and nomads has become one of Britain’s first black-owned unicorns.

London-based Marshmallow, which uses a proprietary pricing algorithm to lower insurance prices for these groups, has raised £62 million in a funding round valuing the company at $1.25 billion.

The firm, founded in 2018 by identical twins Alexander and Oliver Kent-Braham, along with David Goate, now has more than 100,000 customers.

After raising £23m last year it has grown its team to 170 and plans to add 400 more staff over the next 24 months as it launches other types of insurance beyond the motor sector and expands throughout Europe.

Existing investors Passion Capital, Investec Bank and reinsurer SCOR participated in the round.

“The traction the team has achieved demonstrates the demand for a new kind of insurance provider, one that focuses more on consumer experience and uses the latest technology and data to give fair prices,” said Eileen Burbidge, partner at Passion Capital.

“We’ve been proud to support the team’s ambitions since the start, and now look forward to its next chapter in Europe as it continues its mission to change the industry for the better.”

Marshmallow was included in Tech Nation’s Future Fifty scaleup programme, announced in April.