British car insurance start-up Marshmallow has raised $90m (£68.07m) in a combination of equity and debt, reported Bloomberg News.
The funding round, which nearly doubled the company’s valuation to more than $2bn, saw participation from new investors including BlackRock, Columbia Lake Partners and Portage.
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This funding is intended to support Marshmallow’s expansion into new markets and the development of additional products, the report said.
Marshmallow co-founder Oliver Kent-Braham said in an interview with Bloomberg News that the investment will facilitate the company’s plans to extend its product range to include home insurance and motor finance options soon.
Braham said: “We have got a very deep understanding of our customer group. Our approach means that our technology is so much more nimble and flexible that we have managed to continue to grow over the last few years. As we have been maturing, we have been able to cross that profitability barrier.”
The London-based fintech company, founded in 2017 by Kent-Braham, his twin brother Alexander and software engineer David Goaté, focuses on providing insurance to under-served groups such as immigrants.
The company is also exploring international expansion into markets including the US, Canada and Germany.
It has to date provided insurance for one million drivers and reports a turnover run rate surpassing $500m, the report added.
The company employs 700 staff across its London and Budapest offices and is recruiting for positions including engineers, analysts and motor claims handlers.
In 2021, it raised $85m in a Series B funding round, which valued the company at $1.25bn.
The company insurance plans line-up includes Marshmallow Lightest, Essential, Marshmallow Original and Marshmallow Plus, which adds breakdown and legal cover.
