Raiz funds under management soars to $2bn with new product launch

0
2

Brought to you by BULLS N’ BEARS

By James Pearson
October 20, 2025 — 5.28pm

Micro-investing service, Raiz Invest has delivered a barnstorming quarter, smashing through the $2 billion barrier in funds under management (FUM).

The company also added thousands of new customers and launched new products, tightening its grip on Australia’s fast-growing digital wealth sector.

Raiz Invest hit $2 billion in funds under management and record customer numbers in the September quarter from the introduction of new products.

Raiz Invest hit $2 billion in funds under management and record customer numbers in the September quarter from the introduction of new products.

Behind the scenes, Raiz runs a traditional investment fund, however, the way it fills its coffers is anything but old-school. Its innovative, app-based system turns loose change into investment fuel by rounding up every day credit or debit card buys such as coffees or cab fares to the nearest dollar. The platform then sweeps the spare cash straight into a user’s investment portfolio – in a wealth-building process made effortless, one tap at a time.

The company ended the three months to September with 335,542 active accounts, up 8 per cent year-on-year and 1.9 per cent over the quarter.

It says the upped customer count is particularly pleasing given it has just lifted monthly maintenance fees by $1 per month in August – a move that could have sparked churn but instead saw customers stick around in record numbers.

‘We are on track to deliver FY26 UBITDA in the range of $4.5m – $5.5m.’

Raiz Invest managing director and chief executive officer Brendan Malone

Net inflows remained strong at $76 million, while buoyant equity markets added further tailwinds to lift total FUM by nearly 10 per cent in the quarter and 32.5 per cent year-on-year. Almost 57 per cent of that growth came from positive market movements, while the remainder was driven by fresh money flowing onto the Raiz platform.

The performance capped off a pivotal quarter for the ASX-listed fintech, which has now doubled its FUM in less than three years.

Notably, management says the company remains firmly on course for FY26, with underlying EBITDA tipped to land between $4.5 million and $5.5 million — a hefty 60 to 100 per cent jump on last year’s $2.8 million result, signalling that Raiz’s growth engine is really starting to hum.

Advertisement

Raiz Invest managing director and chief executive officer Brendan Malone said: “In the past quarter, we were encouraged by the continued loyalty of our customers, with minimal churn following the August price increase. We have an exciting product roadmap and are actively pursuing new strategic partnerships across different industries to expand our customer base and grow our Super offering. We also continue to look for additional organic growth strategies and M&A opportunities.”

Raiz’s decision earlier in the year to focus its attention on higher-value products appears to be paying off handsomely. Its Plus Portfolios – designed for users who want more control and flexibility over how their money is invested – surged 72.6 per cent year-on-year to $346.4 million.

Similarly, the self-styled Kids Portfolios jumped 76.9 per cent to $92.7 million. The company’s superannuation division also maintained momentum, climbing 19 per cent to $417 million in FUM.

At the core of Raiz’s growth strategy is the shift to a broadening product mix. The quarter saw the launch of Raiz Lite, which is a new low-cost plan aimed at first-time investors, alongside Raiz Academy – an online education platform designed to help everyday Australians manage their money with more confidence.

And the early numbers suggest the strategy is striking the right chord. Since launching, Raiz says less than 0.2 per cent of existing users have churned to the cheaper product.

Meanwhile, more than 30 per cent of new customers have already upgraded from the starter product to higher-value plans – a textbook example of how a savvy tiered product lineup can widen the catchment at the bottom while deepening engagement at the top.

The refreshed fee structure and new offerings have also shifted behaviour, with 36 per cent more customers now selecting the Plus option as their first choice compared to a year ago in a sign that customers are becoming more familiar with the dark art of stock picking.

Raiz has also been busy sewing up Strategic alliances, A new joint marketing push with State Street Investment Management has boosted investor interest in the SPY exchange traded fund, which provides Australian investors direct exposure to the US S&P 500 index.

Elsewhere, a fresh partnership with the finger-lickin’ giant, KFC, is boosting financial education among the fast-food chain’s predominantly young workforce through Raiz’s app-based platform.

With record inflows, growing cross-product engagement and a strengthened brand presence through new partnerships, Raiz appears well placed to build on its momentum.

For a company that began by rounding up spare change, Raiz now appears to be rounding up record profits – and it’s doing so with the kind of traction most fintechs can only dream of.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au

Most Viewed in Business

Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: www.smh.com.au