The move will allow the insurtech to ’grow its customer acquisition without taking on additional dilution to existing shareholders,’ says statement
Motor insurtech Marshmallow has received a £15m three-year revolving credit facility from investment firm Triple Point Private Credit.
In a statement released yesterday (23 May 2023), Triple Point said the move would allow Marshmallow to “grow its customer acquisition without taking on additional dilution to existing shareholders”.
The firm added that it chose to back Marshmallow because of its technology use and work to making motor insurance more accessible for certain groups, such as migrant workers, young drivers and individuals with poor credit history.
Oliver Kent-Braham, co-chief executive of Marshmallow, explained that a deciding factor behind partnering with Triple Point was its “great track record working with other tech scaleups and startups”.
“They truly value our mission to open up the market for underserved communities,” he said.
“We are really pleased to partner with Triple Point.”
Funding requirements
As a UK non-bank lender, Triple Point provides backing to borrowers between £1m and £50m.
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Its partnership with Marshmallow came after concerns about insurtech investment following Tech Nation losing government funding before announcing earlier this year (31 January 2023) that it would cease operations.
For example, Sabine VanderLinden, chief executive and managing partner of Alchemy Crew, told Insurance Times earlier this year (1 March 2023) that it could lead to ”a significant hole in fintech [and] insurtech investment”.
Speaking about partnering with Marshmallow, Triple Point’s head of structured finance Gavin Maitland-Smith said: “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.
“More importantly, their commitment to increasing affordability and accessibility for underserved segments of the community mirrors Triple Point’s purpose-driven approach to investing.”
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