24-7 Broking, the recently launched broker support system, has received a cash injection of £4m from the venture capitalists Granville Baird Capital Partners (GBCP).

GBCP took a minority stake, believed to be about 25%, in the Peterborough-based broker services company Rarrigini & Rosso (R&R) which developed the system.

R&R chief executive Julie Rodilosso said the money would be used to roll-out the 24-7 Broking product in March.

She said the capital would also be used for an elaborate marketing campaign, in line with 24-7's launch in Iceland, and to lower broker costs.

“We haven't even started yet,” she said. “Anything we do will be unusual.”

R&R and GBCP spent five months working on the deal, advised by Pricewaterhousecoopers and Osbourne Clarke OWA.

Rodilosso said 24-7 was currently undergoing pilot testing.

“The system has got to be up and running the first time because brokers need a product that works,” she said.

She said 24-7 would give brokers instant access to insurance company systems and live updates of premium prices, plus an integrated back-office system.

It was 24-7's innovative nature that attracted GBCP, its director Chris Harper said.

“The consolidation of insurers and the growth of directly-written business is putting severe pressure on brokers' business margins and business volumes,” Harper said.

He said brokers needed to remove cost from their businesses to survive and they recognised that a fully-integrated IT system could help them achieve this.

“R&R has an excellent reputation in the market for quality business solutions and has created a truly innovative product in 24-7,” Harper said.

Rodilosso would not rule out seeking further capital in the future, in keeping with its demanding three-year growth plan.