Marshmallow raised $85 million in a new round of funding backed by Passion Capital, Investec and Scor.

Marshmallow, a London, UK-based provider of insurance products, announced raising series B closed at $85 million.

The money was raised from investors including British VC Passion Capital, South African bank Investec and French reinsurer Scor. Proceeds are raised at a $1.25 billion company valuation and will be used for international expansion.

Marshmallow, founded in 2017 by Alexander Kent-Braham, David Goate and CEO Oliver Kent-Braham, launched as an insurance seller targeted at expats. The company's product was using an algorithm that made data assessment based on global data, as opposed to national data which was unfavourable to foreigners living in the UK.

Marshmallow later expanded from car insurance to a larger product portfolio, targeting people between the age of 21-50 with a focus on providing a great price and experience for people who have a fragmented address and credit history, and less affluent people with lower credit scores.

Marshmallow previously raised a $30M Series A funding round in 2020.