Monster success: Michael Acton Smith and friend hope to expand into South America

The children's game-cum-social network Moshi Monsters is set to tap investors to fund an expansion into Spanish-speaking countries.

Michael Acton Smith, the founder and chief executive of Mind Candy, Moshi's parent company, has South America in his sights and is in talks with advisers to begin the fundraising process in the next few months.

Mind Candy was valued at $200m (£125m) after Spark Ventures, an early backer, sold half of its stake last year. Moshi Monsters started as an online games site but has expanded into magazines and merchandise.