Raiz Reports 32% Surge in Funds Under Management and 8.5% Rise in Active Customers
Raiz Invest Limited reports robust growth in Q2 FY25 with active customers rising 8.5% year-on-year and funds under management surging 32.4%, underpinned by product innovation and strong net inflows.
- Active customers increased 8.5% YOY to 317,995
- Funds under management grew 32.4% YOY to $1.61 billion
- Annualised revenue per user (ARPU) rose 6.4% YOY to $75.68
- Launch of Raiz Jars and strong engagement with Raiz Rewards
- Two new Non-Executive Directors appointed to the board
Strong Customer Growth and Revenue Momentum
Raiz Invest Limited (ASX: RZI), a leading Australian micro-investing platform, has delivered a strong Q2 FY25 performance, continuing its upward trajectory in key growth metrics. Active customers increased by 8.5% year-on-year to 317,995 by the end of December 2024, with further growth to 322,219 by late January 2025. This acceleration reflects the company’s enhanced marketing strategies and targeted customer engagement efforts.
Annualised revenue per user (ARPU) also rose 6.4% year-on-year to $75.68, driven by a shift towards higher revenue products such as Raiz Plus and Raiz Super, alongside increased account balances and deeper customer engagement.
Robust Funds Under Management and Net Inflows
Raiz’s funds under management (FUM) surged 32.4% year-on-year to $1.61 billion, supported by a remarkable $183 million in net inflows during calendar year 2024, a significant jump from $57 million the previous year. This growth was broad-based across product lines, with Plus portfolios more than doubling and Super portfolios increasing by 25.8% year-on-year.
The company’s strategy to transition customers from transaction-based savings to long-term wealth creation appears to be gaining traction, as evidenced by a 22.1% increase in average account balances to $5,054. This shift bodes well for customer lifetime value and recurring revenue streams.
Innovation and Product Development Drive Engagement
Product innovation remains a cornerstone of Raiz’s growth. The launch of Raiz Jars in January 2025, allowing customers to manage multiple investment goals within a single account, has seen early adoption with over 5,350 active Jar portfolios created. Additionally, Raiz Rewards, introduced in July 2024, has increased customer engagement, with a 28% year-on-year rise in cashback rewards invested on behalf of customers.
Recognition from industry bodies, including the #1 ranking of Raiz Super’s Moderately Aggressive Option by SuperRatings and the Finder Awards 2024 for Investment Innovation, further validates the company’s product strategy and market positioning.
Governance and Strategic Outlook
Raiz strengthened its board with the appointment of two new Non-Executive Directors, Juliana Nguyen and Paul Rogan, bringing additional expertise to support the company’s growth ambitions. CEO Brendan Malone highlighted the company’s scalable technology platform and ongoing innovation as key enablers for sustained growth.
Looking ahead, Raiz is focused on expanding its product suite, including developing retirement phase offerings within Raiz Invest Super, and continuing to enhance customer retention and engagement through tailored marketing and product development.
Bottom Line?
Raiz’s strong Q2 momentum sets the stage for continued growth, but sustaining customer engagement and navigating market volatility will be critical challenges ahead.
Questions in the middle?
- How will Raiz sustain its accelerated customer growth amid increasing competition?
- What impact will market volatility have on Raiz’s funds under management and net inflows?
- How effectively will new product launches like Raiz Jars translate into long-term customer retention?