UK insuretech Marshmallow sees near-tripling of sales

Car insurance tech firm Marshmallow is racing ahead on its mission to take on the mainstream insurers after posting a near-tripling of sales.

The Old Street-based business, run by twin brothers Oliver and Alexander Kent-Braham, saw turnover climb 175% to £22.9 million in 2022, while profits jumped to £709,000.

The company, which is aimed at car and van drivers who recently moved to the UK but face exorbitant fees from mainstream insurance providers, said it had so far sold over 342,000 policies, with over 300,000 downloads of its app and more than £66 million paid out in claims.

Marshmallow says it has developed its own pricing and fraud algorithms and models which allow it to better cater to customers without a driving history in the UK.

The brothers’ business, founded in 2017, hit unicorn status in September 2021 after it raised $85 million (£70 million) in a funding round led by London-based investor Passion Capital, valuing it at $1.25 billion.

The 31-year-old pair, who began their careers working in investment banks and hedge funds, are estimated to have a combined net worth of £330 million, according to the Evening Standard Tech Rich List, making them among the most successful entrepreneurs in the UK from a Black heritage.

Marshmallow is only the second UK start-up created by black founders to be valued at more than $1 billion. The first came earlier in 2021 with digital payments service WorldRemit.

“We think it’s useful for other founders to see firms led by minorities be successful,” Oliver Kent-Braham told the Standard in 2021. “It is nice for the space and hopefully it gives people role models, but it’s not our core, core message.”

His team is nearly 50% women and made up of 15-20% ethnic minorities. This sits in stark contrast to a swathe of male-dominated, overwhelmingly white tech start-ups on both sides of the pond.

“We believe that having diversity leads to good conversation and disagreement, discussion that leads to better outcomes. We try to just hire really broadly,” he said.