Insurtech unicorn Marshmallow lands £15m credit line from Triple Point

Challenger motor insurer Marshmallow last raised in 2021 in an equity round that pushed its valuation above $1bn.

Marshmallow, a digital motor insurance startup, has landed a £15m 3-year revolving credit facility from Triple Point Private Credit.

The facility will help Marshmallow expand its products to a broader range of customers, primarily in the motor insurance sector, as well as take on additional dilution to shareholders.

Marshmallow was founded in 2017 by identical twins—Oliver and Alexander Kent-Braham, as well as David Goaté in 2017. It offers insurance to underserved customers such as migrant workers, individuals with poor credit histories, and young drivers.

It has raised almost a total of £100m in funding with its latest round in 2021, an $85m series B raise, pushing its valuation over $1bn. 

Triple Point is one of the UK's largest nonbank lenders, typically providing facilities from £1m up to £50m.

"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,” said Gavin Maitland Smith, Head of Structured Finance, Triple Point.

“More importantly, their commitment to increasing affordability and accessibility for underserved segments of the community mirrors Triple Point’s purpose-driven approach to investing,” he added.