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UNIStream money transfer was launched in 2001 by UniAstrum, one of Russia’s fastest growing banks. In 2006, UniAstrum formed a separate company for UNIStream with a separate banking licence. Assets to run the business including 200 staff, 75 cash desks, 145 service points and agency agreements, were transferred over. In April 2007, Aurora Russia announced an initial investment of $13.6m (£6.9m) for a 17.7% stake in UNIStream. In July 2007, after approval from the Central Bank of Russia, Aurora Russia purchased a further 8.3% for $6.4m (£3.1m). Aurora Russia Limited’s total shareholding in UNIStream is now 26%.
Significant market growth
Between 2003 and 2006, the Russian money transfer market grew by 57%, one of the fastest growth rates globally. In 2006 transfer volumes rose from US$7.3 billion to between US$10 and US$11 billion in 2007. According to the World Bank, the official money transfer volumes worldwide were approximately US$350 billion. UNIStream currently accounts for more than 1% of this figure.
 
Recent expansion ensures that UNIStream is well placed to benefit from this increase in demand. In March 2008, Aurora Russia announced that the number of UNIStream cashdesks had risen to 220, with plans to open a further 180 in 2008. With a growing number of partner agreements, UNIStream’s share of the Russian and CIS money transfer market has risen sharply making it market leader. Volume of money transferred by the company in 2007 grew to US$ 3.68 billion, up 100% from 2006.
Volume of money transferred by UNIStream
2005 US$ 0.75 billion
2006 US$ 1.85 billion
2007 US$ 3.68 billion
Like other money transfer companies, UNIStream benefits from migrant workers sending money home. In Russia, a large percentage of this group are employed in construction, a sector that’s expected to grow by 19-20% per annum.
 
Expansion set to continue
Investments will continue to finance UNIStream’s continued aggressive expansion plans for Moscow and the regions. By 2010, the company aims to operate 1116 cash desks and have in place 950 partner agreements.
Valuation details can be viewed in Aurora Russia Limited’s Results which are posted in the Press Room.
Visit the website of Unistream money transfer: www.unistream.ru/en
Return to Aurora’s Russian investment fund portfolio
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