Leading investment app Raiz announces huge lift in revenue and funds under management
Leading investment app Raiz Invest have announced a huge lift in revenue and funds under management (FUM) for the quarter ending 30 June 2024 (Q4 FY24).
Over the past year, Raiz has invested in new product development to help customers grow their wealth, aiming to enhance engagement with investors at all stages of their lives. The success of this strategy is seen in the strong uptake across Raiz’s diversified product suite in 2H FY24.
Revenue from the Australian operations increased by 28.1% YOY (QOQ: +3.1%) to $5.5 million in Q4 FY24 and total FUM was $1.4 billion at 30 June 2024, up 23.4% YOY (QOQ: +4.1%).
Growth in Active Customers was relatively modest, however total FUM increased significantly.
Delivering multiple product offerings has led to increased engagement and helped client retention, contributing to higher FUM and revenue. The average account balance increased by 19.0% YOY from $3,823 at 30 June 2023 to $4,551 at 30 June 2024.
Brendan Malone (pictured), Raiz Invest Managing Director and CEO, said, “Over the past year, I am very pleased to report that we have delivered on two significant operational milestones – transitioning into a sustainable operating cash flow positive company, and divesting the operations in South East Asia in order to refocus on our core Australian business. In addition, and in a challenging market for customer acquisition, we have successfully increased engagement with existing customers through the strong uptake of new products, which has led to a significant growth in our FUM, average account balance and ARPU over the past year.
“In FY25, we will continue to expand our product suite, with new additions to the Plus portfolio, incorporating Plus into the Super offering, launching automatic Raiz Rewards, and improving our marketing processes through AI tools to boost awareness, engagement, and retention.
“We have a scalable platform for growth with a low marginal cost of trading and we continue to pursue both organic and inorganic growth opportunities to accelerate our growth trajectory,” Malone ended.
