5 years ago

Marshmallow Raises $30 Million for Inclusive Car Insurance

  • Marshmallow, a UK-based startup offering car insurance to underserved segments of the market, has raised $30 million in Series A funding

  • The company uses a wider set of analytics and a simple mobile and web-native interface to determine risk and offer competitive rates

  • The funding will be used to expand the business, with plans to launch in further countries and offer more types of insurance in the next 18 months

  • Marshmallow is valued at around $310 million with this round.

      • ProblemFinancial Services

      "Traditional insurance companies use outdated algorithms to determine risk and price, leading to unfair pricing for customers who don't fit typical profiles. Specifically, expats and people with less-than-perfect credit scores or a fragmented address history are often overcharged."

      Solution

      "Marshmallow offers car insurance using a wider range of analytics and a modern mobile/web interface, targeting underserved segments of the market. It incorporates global driving data, not just national, to provide fairer pricing for expats. Additionally, they provide competitive pricing to individuals with lower credit scores and fragmented address histories."

      Covered on