Marshmallow raises $90 million

UK-based insurance intermediary Marshmallow has raised $90 million at a valuation of over $2 billion, according to TechCrunch. The funding will support its expansion beyond car insurance, with plans to enter new categories such as homeowners insurance and to launch its first lending product later in 2025.

Founded in 2016 to offer car insurance for expats, Marshmallow has since grown to insure 1 million drivers. It reported a £1.7 million profit in 2023.

The company has raised $134.82 million to date, excluding the latest round, with coverage underwritten by Marshmallow Insurance Limited and/or Wakam.

In 2021, Marshmallow raised an $85 million Series B and outlined ambitions to expand across Europe and diversify its product offerings. However, beyond adding van insurance and undergoing a rebrand, those plans had yet to materialize.