Money transfer business Small World has received £2.4m of investment from private equity firm MMC Ventures.
Small Word operates ‘corridors’ of money exchange between western Europe and developing countries.
The UK is a growing market – about 10% per annum – as it has a large recently arrived workforce which wants to be able to send money back to their home countries.
It is estimated that in 2005 £108bn was transferred globally, with £3 billion originating in the UK.
The company has also bought three companies which work in the money transfer operator (MTO) sector and that primarily are focused on the UK, Western Europe, West Africa and Brazil.
Small World uses existing relationships between migrant communities and their local MTOs in order to do its business.
Maintaining these links in the community is fundamental to their business plan as trust is important when remitting money, the company says.
Chris Clothier, who led the investment for MMC, said: “Money flows between expatriates and their home countries have been increasing rapidly and are a major factor in the economic growth of emerging markets, exceeding the flows of international aid.
“The MTOs provide a service that is cheaper and quicker than traditional banks and we see a big opportunity for consolidation and growth.”
© Crimson Business Ltd. 2007
