MMC has added to its growing financial services portfolio with a recent investment of £2.4 million in Small World, an ethnic money transfer business.

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MMC Ventures invests £2.4 million in Small World Ltd

MMC Ventures (MMC), a venture capital firm investing in fast-growing young companies, today announced that it has invested £2.4 million of equity in Small World Ltd, a money-transfer business operating along ethnic corridors. 

Small World is active in the money transfer operator (MTO) sector. To date it has acquired three such businesses predominantly operating between the UK, Western Europe, West Africa and Brazil. Small World capitalises on existing relationships between migrant communities and their local MTOs.  Maintaining these links in the community is fundamental to their business plan as trust is important when remitting money.

Small World is currently operating in a highly fragmented market that is experiencing considerable growth. Over 75% of MTOs have a market share of just 2%. The UK market is currently growing at around 10% per annum which is in part driven by increased global migration, as migrant communities seek to remit money to friends and family in the developing world.  It is estimated that in 2005 £108 billion was transferred globally, with £3 billion originating in the UK. 

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.”
 

ENDS

Further information:

Cardew Group
David Roach
020 7930 0777

MMC Ventures
Chris Clothier
020 7361 0213

Notes for editors:

Small World
Nick Day is Director of Small World responsible for leading the expansion of the company across Europe and the rest of the world.  Nick was formerly head of venture development at Lloyds TSB, and prior to this senior marketing manager at Royal Bank of Scotland.

MMC Ventures is a venture capital firm which invests in fast-growing, young companies through managed funds and a Syndicate of 50 experienced business angels, who provide mentor capital to portfolio companies.  Founded in 2000, MMC has made 17 investments to date, two of which have exited on AIM. This is MMC’s fourth investment in financial services. MMC is authorised and regulated by the Financial Services Authority.  For further information: www.mmcventures.com