InsurTech Marshmallow has raised $85m as part of its Series B funding round – making it the UK’s latest tech unicorn.
As a licensed insurance carrier powered by technology, the firm seeks to renovate the insurance industry by offering customers who fall outside the typical ‘good risk’ profile, a fairer and faster service, via the utilisation of data and artificial intelligence (AI).
Conceived by twins Oliver and Alexander Kent-Braham, the firm - valued at over $1.25bn - is one of the first UK unicorns to be founded by individuals that are Black, or have Black heritage.
Funds from the Series B will be deployed to further expand the disruptive brand across Europe, as well as grow its motor insurance market share in the UK. Prominent backers include Passion Capital, Investec Bank and Scor.
Commenting on the raise, Oliver Kent-Braham, co-founder and CEO of Marshmallow, said: “Customers are voting with their feet - and they clearly want a modern insurance offering. We’ve only just scratched the surface of disrupting a market worth $5 trillion globally, and there’s so much more we’re planning to do in the coming years. We look forward to building more products that help people in their time of need.”
As one of just two insurtechs to have secured an insurance licence in the UK, Marshmallow has enjoyed a growth of over 100% in the last six months, and has sold over 100,000 policies to date. It is fast becoming a leader in the insurance space.
Marshmallow’s Series B raise follows its Series A, in November 2020, which secured the company $30 million. The firm has raised a total of $120m since it was founded.
Gerard Grech, Tech Nation CEO, commented on Marshmallow’s unicorn status: “Marshmallow’s unicorn status highlights yet another tech success story of 2021, hot on the heels of the UK reaching 100 tech unicorns. Marshmallow - having previously joined Tech Nation’s Future Fifty programme - is an excellent example of what can be achieved when given the right tools and networks to thrive, but we must continue to level the playing field for excellent Black founders to scale to their fullest potential. The UK’s tech sector is going from strength to strength, with innovative entrepreneurs such as Oliver and Alexander Kent-Braham cementing our place on the world stage.”