Marshmallow, a London-based insurtech startup built by twin brothers Alexander Kent-Braham, Oliver Kent-Braham, and David Goate, is reportedly all set to become a unicorn.
According to the latest reports, existing investors are about to make a capital injection that could value the company at $1.2 billion (approx £870 million). The official announcement is likely to be on this week, adds the report.
Quadrupled customer base
Previously, the company secured a $30 million (approx £21.6 million) at a $310 million (approx £223 million) valuation. It’s worth mentioning that the company’s value has rise four-folds since the last funding round.
To date, the company has raised €28.4 million (approx £24 million) from investors including Passion Capital, Chris Adelsbach, Outrun Ventures, and Will Brooks.
Founded in 2017, Marshmallow is developing insurance products that aim to use better data and technology to provide more fairly priced insurance cover to non-UK nationals.
The company uses a proprietary pricing algorithm to lower prices for immigrants, expats, and nomads. The company quadrupled its customer base to more than 50,000 last year and increased its workforce to 100.
How did Marshmallow start?
The trio started the company to revive the broken insurance industry, which offers expensive quotes without transparency.
“One day, we were talking to a friend of ours who had recently moved to the UK. They were trying to get car insurance but kept getting hit by these outrageously expensive quotes. And we didn’t have to look very hard to see why,” says the founders
“Traditional insurers cash in on migrant drivers. In fact, traditional insurers cash in on a lot of people. Why? Because they work from a default position of distrust and judge them based on impersonal and outdated systems. In short, the whole industry is broken.”
Thus, Marshmallow was born!
A couple of months back, Mulsanne Insurance accused Marshmallow of stealing trade secrets and breaching contracts, claiming damages of at least £39 million.
According to Mulsanne, a London-based insurtech startup has stolen critical information used to price and rate motor insurance policies. However, Marshmallow has denied both the accusations.
It’s worth mentioning that Marshmallow terminated its business tie-up with Mulsanne earlier this year, after setting up its insurance company.
Last month, Mulsanne Insurance was ordered to pay £65K to Marshmallow after its specific disclosure application was dismissed by the judge in an ongoing legal spat.
However, Marshmallow’s spokesman declined to comment on the fundraising but said it rejected Mulsanne’s legal claims.