Marshmallow, a UK startup specializing in car insurance for immigrants, has successfully raised $90 million, elevating its valuation to over $2 billion.

Founded in 2017 by Oliver and Alexander Kent-Braham and David Goaté, Marshmallow aims to expand internationally and evolve into a comprehensive financial services provider for migrants.

The company primarily serves immigrants in the UK, who often struggle to find affordable insurance options compared to native residents.

Marshmallow is eyeing international expansion into markets like Germany, Canada, and the US, which have significant immigrant populations.

The startup has garnered attention for its innovative approach, positioning itself within a growing trend of insurtech companies that challenge traditional insurance providers.

The newly acquired funds, sourced from notable investors including Portage Ventures and BlackRock, will enhance Marshmallow's technology platform and expand its product offerings.

This capital will also facilitate the launch of Marshmallow's first lending product aimed at immigrants, set to debut later this year.

Utilizing artificial intelligence and machine learning, Marshmallow seeks to disrupt the traditional car insurance market by improving risk assessment and premium setting.

Co-CEO Kent-Braham has indicated that an initial public offering (IPO) could be a future consideration, reflecting the company's flexible growth strategy.

While focusing on organic growth, Marshmallow remains open to potential mergers and acquisitions with other fintechs targeting a similar customer base.

Kent-Braham views migration as a significant opportunity, aiming to create a 'one-stop shop' for financial services tailored to new arrivals.

Since its last funding round in 2021, when it was valued at $1.25 billion, Marshmallow has expanded its customer base significantly, now covering over 100,000 insured individuals.