British Insurer Marshmallow Valued at $2 Billion With BlackRock Backing

British car insurance startup Marshmallow has almost doubled its valuation to more than $2 billion after a funding round that was backed by new investors BlackRock, Columbia Lake Partners and Portage.

The firm, which offers insurance to under-served customers such as immigrants, raised $90 million in a mix of equity and debt to fund its expansion into new markets and products, according to a statement Tuesday.

Marshmallow has raised money three years after its previous round, at a time when numerous other fintechs are accepting lower valuations or even backing off from fundraising until the economic outlook settles. Meanwhile, Britain’s biggest general insurers have been consolidating as firms struggled to raise premiums as quickly as cost inflation.

Co-founder Oliver Kent-Braham said in an interview with Bloomberg News the funds will help Marshmallow to extend its offering to home insurance and lending products including motor finance in the coming months. The fintech is also exploring international growth in markets like the U.S., Canada and Germany.

“We’ve got a very deep understanding of our customer group,” Kent-Braham said. “Our approach means that our technology is so much more nimble and flexible that we’ve managed to continue to grow over the last few years. As we’ve been maturing, we have been able to cross that profitability barrier.”

Kent-Braham, along with his twin brother Alexander and software engineer David Goaté, set up Marshmallow in 2017 to help under-served groups access car insurance.

The London-headquartered insurance firm has insured 1 million drivers to-date and said it has a turnover run rate of more than $500 million. The firm has 700 employees based in London and Budapest and is hiring across teams including engineers, analysts and motor claims handlers.