Marshmallow, a London-based insurtech, reported a noteworthy 75% revenue increase in 2023, reaching £184m.
- Losses were significantly reduced by 98%, showcasing Marshmallow’s enhanced financial health.
- The company achieved a positive EBITDA for the first time since launching its insurance carrier in 2021.
- Marshmallow faced regulatory challenges, including a fine from the Gibraltar finance regulator.
- Founded by the Kent-Braham twins and David Goaté, Marshmallow aims to modernise insurance beyond the typical “good risk” profile.
Marshmallow, a London-based motor insurance company, has reported a substantial growth in its revenues, which surged by 75% in 2023, reaching a turnover of £184 million for the year ending 31 December. The company, despite facing industry challenges, has made remarkable strides in enhancing its financial stability by reducing its losses by a dramatic 98%, from £16.1 million to just £208,000. This financial improvement is underlined by Marshmallow achieving a positive EBITDA for the first time since it launched its own insurance carrier in 2021.
A key statement from Marshmallow indicated that the group continues to experience rapid growth and forecasts continued profitability into 2024 and beyond. The company’s strategic vision involves scaling the business with an increasing focus on profitability. To support its expansion, Marshmallow expanded its workforce significantly, adding around 80 new employees, bringing its total headcount to 310.
However, the company’s growth was not without hurdles. In June, Marshmallow faced regulatory scrutiny resulting in a £200,000 fine from the Gibraltar finance regulator. This penalty was due to the company raising its gross written premium without obtaining the necessary regulatory consent, reflecting the complexities of navigating financial regulations. In response, Marshmallow committed to enhancing its corporate governance by agreeing to undertake further training.
The company’s promising trajectory is also backed by strong financial support. In 2021, Marshmallow secured $85 million in a funding round that valued the company at $1.25 billion, making it a significant player in the insurtech sector and Britain’s first unicorn founded by entrepreneurs of black heritage. The high-profile investment came from notable backers including Passion Capital, Investec, and Scor, underscoring the confidence in Marshmallow’s innovative approach.
Founded in 2017 by identical twins Oliver and Alexander Kent-Braham along with David Goaté, Marshmallow was established with the objective of revolutionising the insurance industry. By leveraging data, Marshmallow aims to offer more affordable insurance options to customers who typically fall outside the conventional “good risk” profile, thereby addressing a broader consumer base.
Marshmallow’s strategic growth and focus on profitability mark its strong presence in the insurtech industry, despite regulatory challenges.
