UK-based auto insurer Marshmallow has raised $85m in a Series B funding round, which valued the company at $1.25bn.
The round saw participation from the company’s existing investors Passion Capital, South Africa’s Investec Bank and French reinsurer SCOR.
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The digital-only insurer intends to use the proceeds to foray into foreign markets and develop a variety of insurance solutions other than motor insurance.
Founded in 2017 by identical twins Oliver and Alexander Kent-Braham and David Goate, the firm also plans to use the funding to hire more people as part of its expansion plan.
Marshmallow, which is authorised by the Financial Conduct Authority, leverages machine learning to offer bespoke insurance solutions to its customers. It underwrites its own insurance.
“We try to use more data than our competitors to underwrite people and then to digitize everything,” Kent-Braham was quoted by CNBC as saying.
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By GlobalDataHe added: “We need to hire about half what our competitors need to hire to support customers. We believe we’re really well-placed to take market share.”
The latest round follows $30m Series A funding in November 2020, which valued the firm at $310m.
In March this year, another UK-based insurtech Zego achieved unicorn status after it raised $150m in a funding round led by DST Global.
In June, Germany-based insurtech startup wefox raised $650m in Series C funding led by Target Global. The funding round valued the company at $3bn.
