Marshmallow, an InsurTech company that strives to make motor insurance accessible to underrepresented sectors, has secured a £15m three-year revolving credit facility from Triple Point Private Credit.
Established in 2017, Marshmallow has become a beacon in the InsurTech scene for its innovative use of technology and commitment to providing fair and affordable motor insurance to underprivileged communities.
The £15m funding round was led by Triple Point Private Credit, a firm that works with borrowers to maximise their liquidity by structuring working capital facilities that fit their needs and facilitate growth. This investment is a vote of confidence in Marshmallow’s ambitious efforts to reshape the motor insurance sector.
Marshmallow’s core mission is to cater to poorly served customer segments, such as migrant workers, individuals with poor credit history, and young drivers. By leveraging cutting-edge technology and a unique business model, the company has been able to provide insurance solutions that are both fair and affordable.
The new funding will be instrumental in supporting Marshmallow’s continued growth. The company plans to use the capital to offer affordable monthly payment options to an even wider range of customers, primarily in the motor insurance sector. This will allow the firm to grow its customer acquisition without incurring additional dilution to existing shareholders.
Additionally, the latest funding raise values the company at over $1bn, a testament to the robust growth and successful track record of Marshmallow since its establishment in 2017. Prior to this round, the company had raised $85m, signifying a marked increase in investor confidence and backing for the company’s vision.
Gavin Maitland Smith, head of structured finance, Triple Point, said, “We have held conversations with Marshmallow’s management for some time about how we may help them with their funding requirements and are excited to be working with a management team that have successfully launched and scaled an insurance business so impressively. More importantly, their commitment to increasing affordability and accessibility for underserved segments of the community mirrors Triple Point’s purpose-driven approach to investing.”
Oliver Kent-Braham, co-CEO, Marshmallow, said, “We are really pleased to partner with Triple Point. They have a great track record working with other tech scale-ups and start-ups, and they truly value our mission to open up the market for underserved communities.”
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