The move is expected to fuel Marshmallow’s customer acquisition efforts while minimizing dilution for existing shareholders, according to a statement released on May 23, 2023.

Triple Point expressed its decision to back Marshmallow based on the insurtech’s commendable use of technology and its efforts to increase accessibility to motor insurance for marginalized groups, including migrant workers, young drivers, and individuals with poor credit histories. Marshmallow’s mission to address the needs of underserved communities resonated strongly with Triple Point’s investment philosophy, leading to the partnership.

Marshmallow’s proposition remains attractive to investors

Oliver Kent-Braham, the co-chief executive of Marshmallow, emphasised that Triple Point’s impressive track record in supporting tech scaleups and startups played a vital role in the decision to collaborate. Kent-Braham stated, “They truly value our mission to open up the market for underserved communities. We are really pleased to partner with Triple Point.”

Triple Point, as a prominent UK non-bank lender, specialises in providing financial support ranging from $1.2 million to $61 million to various borrowers. Gavin Maitland-Smith, the head of structured finance at Triple Point, highlighted the extensive discussions held with Marshmallow’s management over an extended period, outlining how Triple Point could assist with the company’s funding requirements.

Marshmallow’s commitment to affordability addresses underserved segments

Maitland-Smith expressed excitement at the opportunity to work with Marshmallow’s accomplished management team, who have demonstrated an impressive ability to launch and scale an insurance business effectively. He also commended Marshmallow’s commitment to enhancing affordability and accessibility for underserved segments of the community, aligning with Triple Point’s purpose-driven investment approach.

“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,” Maitland-Smith said.

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

The new investment backing from Triple Point Private Credit is poised to provide Marshmallow with the financial resources necessary to further its growth trajectory, expand its customer base, and continue its mission to revolutionize the motor insurance landscape for traditionally overlooked communities.