SCOR-backed insurtech becomes UK's next unicorn to 'disrupt' $5tr insurance market
London-based insurtech with high profile backers including one of the world's largest reinsurer SCOR has become Britain's next unicorn with its latest funding round. The company is looking to "disrupt" the insurance market worth $5 trillion globally.
Marshmallow, a licensed insurance carrier driven by technology, data and artificial intelligence (AI), has raised another $85 million in its Series B funding round at a valuation of more than $1.25 billion, making it one of two UK unicorns. The company's backers include Passion Capital, Investec and SCOR.
Oliver and Alexander Kent-Braham (both pictured) started the company in 2017 with a purpose to "modernise the insurance industry", using data to provide more affordable insurance to customers who fall outside the typical "good risk" profile. Marshmallow is one of two UK insurtechs to have secured an insurance licence.
Marshmallow’s Series B raise closely follows its Series A round, which closed in November 2020 and secured the company $30 million in funding, taking its total raised to $120 million to date.
The company will use its latest investment to expand into other countries including Europe, hire new talent and build other products.
Kent-Braham, co-founder and chief executive 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 $5trn 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.”
Eileen Burbidge, partner at Passion Capital, added: “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. 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.”
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