Raiz Invest Australia Limited (ASX: RZI) is a financial services business that enables consumers to frequently invest in a secure way using Raiz app or its website. Headquartered in New South Wales, the company had achieved a robust growth since the time it has been launched in 2016.
The company, on 6 May 2019, released data on its Active Customers and monthly Funds Under Management (FUM) during April 2019. Raiz’s Active Customers rose by more than 2 percent in April to 190,685 from 186,884 in March. The company’s total Funds Under Management also increased by more than 7.4 percent to $322.64m in April from $300.28m in March.
Raiz Invest’s CEO George Lucas appreciated the company’s strong growth performance in another month, with the active customers reaching almost 200,000 in number. He called the FUM growth to be well above the combined market movements of the company’s ETF basket. According to him, the improvement in customer growth signifies better market conditions.
In the last week of April 2019, Raiz Invest announced, quarterly update for the three months to 31 March 2019. The quarterly update incorporated the company’s financial performance, its operating activities and execution of the strategic initiatives during the quarter.
Raiz reported total revenue of $1.43 million during the quarter and net operating cash outflow of $1.35 million. 1.5 per cent decline was witnessed in the normalised revenue of the firm during the March quarter. The advertising revenue, maintenance fee revenue and netting revenue rose by 94 percent, 26 percent and 40 percent respectively over the past year.
The company’s cash and term deposits amounted to $7.8 million as on 31 March 2019.
On the operating activities front, the number of active or paying customers increased by over 6.5 percent to 186,884 over the quarter. Also, the funds under management rose by 18.1 per cent to $300.3 million at the end of Q3 FY2019 from $254.2 million at the end of Q2 FY2019.
The strategic initiatives executed by the company during the quarter included:
- Raiz began coding the new design for the update of the Raiz Apps.
- Indonesian business was launched - 22,000 customers already joined into it.
- Focussed on increasing the customer LTV by enhancing revenue per customer.
- Improved the Raiz Rewards platform to increase the productivity of new partners.
- Emphasis on security and risk front.
The company notified the market about its active consumers and total funds under management update for the March month on 8th April 2019. In 2019, FinTech Business awarded, the company with Australia’s Investment Platform Innovator of the year award.
On the global expansion front, Raiz Invest was launched in Indonesia on 7th March 2019. The company aimed to improve on financial literacy and financial inclusion front through this expansion.
The company’s stock price witnessed a slip of 4.63 percent and is currently trading at a price of A$0.515 (as on 7th May 2019, 12:31 PM AEST) in contrast to yesterday’s closing price at A$0.540. The YTD return for the stock of the company is recorded at 22.73 per cent. The company’s market capitalisation stands at A$33.78 million. Around 18,466 shares have been traded till now (as recorded on 7 May 2019).
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