The company will join other unicorns revealed this year, including Bought by Many, Zego and Tractable
Marshmallow Financial Services is finalising a funding round that will see the digital motor insurtech become worth $1.2bn (£898m), making it the sector’s latest unicorn.
A unicorn in business refers to a startup company with a value of more than $1bn (£723bn).
According to Sky News, the cash injection is understood to be coming from its existing investors.
This follows Zego, Bought by Many and Tractable becoming unicorns in H1 2021.
Marshmallow targets insurance customers that it believes are underserved, such as immigrants and expats.
It was founded in 2015 by identical twins Oliver and Alexander Kent-Braham, as well as David Goaté, who is now also the firm’s chief technology officer.
Following this new funding round, Marshmallow’s value will have risen almost fourfold since its last funding round closed nine months ago.
Last November it raised $30m (£21.7m), reaching a $310m (£224.5m) valuation.
The company offers targeted car insurance products to its customers through the use of machine learning tools.