Marshmallow

UK-based Marshmallow provides auto insurance via a digital platform. The platform uses machine learning technology to analyze various data points to provide tailored insurance policies to its customers. The company was initially founded with the goal of providing affordable insurance policies to expats in the UK and therefore incorporates a customer’s international driving history into its pricing algorithms, rather than relying on national data alone. The company has since expanded its focus to include other underserved segments, such as younger demographics and individuals with lower credit scores.

The platform requires customers to fill out an online application with information relating to the customer’s personal details, such as age, customer’s license, and details of the customer’s car and annual mileage traveled. The platform then uses this information, in addition to other relevant data points, to price its policies.

Funding and financials

In September 2021, the company raised USD 85 million in Series B funding at a valuation of USD 1.25 billion (up 4x from its valuation of USD 310 million in November 2020). The funding round was backed by existing investors which include Passion Capital, Investec, and Scor. The new funds intend to be directed toward developing new products in addition to expanding into new markets outside the UK.

In FY2022, the company recorded revenue of GBP 22.9 million (a 175% YoY increase) and net profit of GBP 709,000. In addition, it had solve over 342,000 policies as of the same period.