Raiz’s Growth Momentum Faces Test as Drip Partnership and New Products Loom

Strong Customer Growth and Revenue Momentum

Raiz Invest Limited (ASX – RZI) closed out FY25 with a compelling quarter marked by steady growth across its core business metrics. Active customers increased by 7.3% year-over-year to 329,277, reflecting the success of targeted marketing campaigns and customer acquisition strategies. This growth was accompanied by a 6.9% rise in annualised revenue per user (ARPU), which climbed to $77.2, driven by increased uptake of higher revenue products such as Raiz Plus, Raiz Super, and Raiz Rewards.

Despite some market uncertainty tempering new customer additions in Q4, Raiz added over 22,500 net new active customers throughout FY25, underscoring its ability to attract and retain users in a competitive fintech landscape.

Record Funds Under Management and Product Expansion

Funds under management (FUM) surged to a record $1.82 billion, a 30.4% increase year-over-year and a 10.3% jump quarter-over-quarter. This growth was fueled by strong net inflows of $45.8 million and favourable market movements. Notably, the Superannuation segment saw a 20.8% rise in customers and a 34.4% increase in FUM, highlighting Raiz’s expanding footprint in retirement savings.

Other product lines also experienced significant growth, with Plus portfolios up 42.2% and Kids portfolios surging 45.0% year-over-year. The average account balance rose by 21.5% to $5,530, indicating deeper engagement and increased investment per customer.

Strategic Partnership with Drip Invest

In a strategic move, Raiz entered into an agreement with Drip Invest, an educational investing app for children and teenagers, following Drip’s announced closure in August 2025. This partnership grants Raiz access to Drip’s customer base and marketing partnerships, potentially accelerating Raiz’s reach among younger investors and reinforcing its commitment to financial education.

While the long-term impact of this alliance remains to be seen, it aligns with Raiz’s broader strategy of organic growth and market expansion through innovative collaborations.

Industry Recognition and Innovation Drive

Raiz’s market leadership was further validated by multiple industry accolades, including being named one of CNBC World’s Top Fintech Companies 2025 and receiving recognition from Fintech Australia, Finder, and WeMoney. The company’s focus on innovation is evident in recent product launches such as Raiz Jars and the Raiz Your Game podcast, which have resonated well with users.

Looking ahead, Raiz is preparing to unveil new products and features in Q1 FY26, supported by operational enhancements in marketing systems and the integration of generative AI tools to boost customer acquisition and retention.

CEO Commentary and Outlook

Managing Director Brendan Malone expressed confidence in the company’s trajectory, highlighting the solid business fundamentals and positive trends across all key metrics. He emphasized ongoing investments in technology and data analytics as critical to sustaining growth and hinted at potential mergers and acquisitions to complement organic expansion.