Marshmallow Partners with Evolution for Motor Finance Push
Marshmallow has formed an exclusive partnership with Evolution Funding to provide motor finance services to newcomers and migrants in the UK.
The deal represents the first strategic development outside motor insurance since the insurtech raised US$90m in April 2025.
The partnership targets customers who often lack the credit history required by mainstream finance providers.
Marshmallow will leverage Evolution's distribution platform and market data to serve this demographic through dealer networks.
The collaboration forms part of Marshmallow's strategy to become a comprehensive financial services provider for newcomers to the UK.
The company applies risk assessment and pricing models designed specifically for customers without traditional UK credit footprints.
Data drives market opportunity assessment
Evolution Funding's analysis of live application and proposal data informed Marshmallow's evaluation of the market opportunity. The partnership enables dealers to approve customers who would typically face rejection from traditional lenders.
Marshmallow will integrate its technology and customer data with Evolution's platform connectivity and market insights. Evolution operates the UK's used motor finance marketplace, connecting thousands of dealers with lenders and partners.
The partnership addresses a gap in the market where newcomers face barriers accessing secured car finance.
Marshmallow's data shows fewer than one in ten of its New to UK customers accessed secured car finance for their most recent vehicle purchase, compared with higher rates among UK-born customers.
Targeting underserved demographics
Oliver Kent-Braham, Co-founder and Co-CEO of Marshmallow, says the partnership addresses both individual and national economic issues.
“Despite almost one in five UK adults born outside the UK, many are still locked out of fair financial services, creating barriers that make it harder for newcomers to settle and take part in everyday life,” Oliver says.
“Motor finance is a natural next step for us, with our own data showing that fewer than 1 in 10 of our New to the UK customers accessed secured car finance for their most recent car purchase, far below the equivalent rate for those born in the UK.”
Oliver points to the economic importance of migration to UK services. Around one-third of NHS nurses come from outside the UK, he notes.
“This collaboration is one step in ensuring that these hardworking individuals are supported with access to financial services that allow them to thrive,” Oliver says.
Platform model enables scale
Evolution Funding's platform model connects dealers with multiple lenders and partners to deliver finance solutions. The addition of Marshmallow expands options for customers with complex credit profiles.
Lee Streets, CEO at Evolution Funding, says the partnership aligns with the company's platform approach. “We're proud to welcome Marshmallow to our lender panel. Their innovative approach aligns perfectly with our platform model,” Lee says.
“Importantly, it was our analysis and intelligence that helped shape this opportunity, proving the scale of the unmet need and ensuring we can deliver inclusive solutions responsibly.”
Lee emphasises the combination of Marshmallow's credit models with Evolution's distribution network.
“By combining Marshmallow's unique credit models with our distribution, insight, and lender diversity, dealers now have an even greater ability to serve customers with complex credit profiles,” Lee adds.
Company backgrounds and market position
Marshmallow was founded in 2017 by twins Alexander and Oliver Kent-Braham alongside David Goaté. The company initially focused on providing car insurance to UK newcomers and has since provided cover for over one million customers.
The business achieved unicorn status in 2021 and was named the second-fastest growing company in Europe by The Financial Times in 2023. Marshmallow employs over 600 people across offices in London and Budapest.
Evolution Funding operates as the UK's used auto finance platform. In 2024, the platform supported up to 5,000 dealers, funded nearly 113,000 vehicles, and enabled £3.1bn in advances. The company is headquartered in Chesterfield with additional UK offices.
The partnership positions both companies to address the needs of newcomers to the UK who face challenges accessing traditional financial services.
Evolution's platform provides the distribution infrastructure while Marshmallow brings specialised risk assessment capabilities for this demographic.