Marshmallow, the British insurance unicorn, is close to finalising a new capital injection valuing it at more than £1.5bn, despite the difficult funding environment facing many technology companies.
Sky News has learnt that Marshmallow is in advanced talks to secure tens of millions of pounds in its first major equity fundraising in more than three years.
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Banking sources said on Thursday that Portage Capital, a Canadian fintech investor, had been in discussions with Marshmallow for some time about leading the fundraising.
Perella Weinberg Partners, the investment bank, is understood to have been advising the British company for several months.
At a valuation of more than £1.5bn, it would represent a substantial premium to Marshmallow’s last fundraising in 2021.
Founded in 2015 by identical twins Oliver and Alexander Kent-Braham and David Goaté, the company targets customers who are typically underserved by the insurance market, including immigrants and expats.
Among those previously disclosed as investors in Marshmallow are Investec, the bank, and Passion Capital, a prominent venture capital firm.
Reports last month said Marshmallow’s 2023 revenues soared 75%.
The company now employs more than 300 people.
It was also reported to have secured a £15m debt facility from Triple Point, a provider of private credit, in May 2023.
Marshmallow did not respond to emails to one of its co-founders or an address set up to handle media enquiries.