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Raiz rides out market turmoil to log surge in funds under management

ASX-listed fintech micro-investment disrupter Raiz Invest has posted a blockbuster quarterly result, shaking off March’s global market jitters to clock record-breaking funds under management, underpinned by a turbocharged pipeline of product innovation.

While Raiz may run a fairly traditional fund, the way it attracts money is anything but. Its slick tech platform lets users round up everyday purchases to the nearest $1, $2 or $3 - with the spare change automatically funnelled into an investment account in their name.

In its latest update, the company raked in a hefty $60 million in net inflows for the three months to March - up 67.9 per cent on the previous period to achieve its best effort since the heady days of mid-2022.

Total funds under management are 23.1 per cent higher than a year ago and now sit at a record $1.65 billion.

Company revenues also continued to rise with a 2.6 per cent quarter-on-quarter uptick to $6.1M, translating into a 14.1 per cent lift for the past 12 months.

Adding to the good numbers, the micro-investment maestro reported a 6.9 per cent year-on-year jump in active customers to 324,968 and a 5.9 per cent bump in annualised revenue per user, which climbed to $75.94 each.

Indeed, more than 60 per cent of customers continued to make recurring deposits throughout the quarter, helping drive the average account balance to $5078 – a 15.1 per cent lift from a year ago.

Although the growth in active users marginally slowed in the quarter to 6973 - with the finger of blame pointing squarely at global market volatility - the positive trend has resumed and sat at 326,544 yesterday.

Raiz says the uptick in revenue per user reflected an accelerating shift towards higher-value products, such as Raiz Plus and Raiz Super. The Plus portfolio’s business alone surged 42.5 per cent year-on-year, while Raiz Super grew 24.1 per cent, bolstered by channel partnerships and what management claimed was an “industry-leading” investment performance.

Meanwhile, the Raiz Kids platform’s portfolios soared 36.3 per cent to 51,662 users, reinforcing the company’s growing appeal across generational lines.

Raiz’s latest fintech toy Raiz Jars, which was launched in January, has also staked its claim as a future company winner. The new feature allows users to juggle multiple investment goals in a single account and attracted more than 15,000 new customers in its first three months. The product added $6M in funds under management, positioning it as a sticky retention play.

Raiz Invest managing director and chief executive officer Brendan Malone said: “We are increasing engagement with our customer base, as they use more products and features on our platform and focus on longer-term wealth creation through all market cycles. Our business model is again proving to be resilient through market cycles, and we are well positioned to continue our growth trajectory.”

Raiz’s impressive performance hasn’t gone unnoticed. The company bagged a prestigious gong at the 2025 Canstar Innovation Excellence Awards for its work on Raiz Plus - a nod to its continued commitment to pushing boundaries in the retail investment space, management says.

Nor is the team resting on its laurels. Alongside the Jars rollout, Raiz launched an improved user interface across its Kids and Rewards products, optimised its onboarding experience to lift conversions and launched a slick new podcast - Raiz Your Game - targeting the millennial and Gen Z crowd.

With a tidy $12.5M in the bank and a positive $447,000 cash inflow from operations, the fintech’s balance sheet remains in good nick.

Despite the strong financial headwinds, the company appears to have shrugged off the market uncertainty and seems to have successfully continued to convince a new generation of investors to step up to the plate.

Raiz looks poised to keep riding the digital wealth wave well into the rest of the financial year and beyond.