Raiz funds under management reach $2.17B as customers keep piling in
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penny taylor
Micro-investing innovator Raiz Invest weathered market jitters to deliver a confident third quarter, delivering solid gains in its key metrics while also improving its product development and AI tactics.
Funds under management (FUM) increased 23.6 percent year over year to $2.04 billion, active customers increased to 340,222, and average revenue per user (ARPU) increased 14.1 percent to $86.61.
Although the fluctuation in the market in March dulled the activity for a short time, there was a sharp return in April; FUM rose to $2.17 billion as sentiment stabilized and active customers rose to 347,354.
Despite the volatility, the company notably maintained its full-year guidance, with its underlying earnings forecast before interest, tax, depreciation and amortization in the range of $4.5 million to $5.5 million.
‘Raiz business model has once again proven its resilience in the face of market volatility.’
Raiz Invest managing director and chief executive Brendan Malone
At the heart of Raiz’s product offering is a simple but sticky mechanism for retail investors to raise capital. The platform rounds up daily purchases to the nearest dollar and transfers spare funds into investment portfolios, quietly turning daily expenses into long-term wealth. This steady stream of micro-contributions, often paired with recurring deposits, creates a consistent inflow engine that compounds over time and cushions the impact of market volatility.
Dig a little deeper and you’ll see that the real story is growth based on engagement. While the company’s Jars product is up 142.4 percent year-over-year and a whopping 22.9 percent quarter-on-quarter to 33,331 active accounts, higher-value products are taking the spotlight.
The Kids and Plus portfolios delivered equally strong gains of 26.3 percent and 22.4 percent, respectively, easily outpacing the 4.7 percent increase in overall customers. The company says this trend signals that the platform is shifting gears from simply signing users to steadily scaling product uptake as customers become more familiar with a broader range of offerings.
FUM held its ground due to global volatility and eased only slightly from the previous quarter as markets turned volatile. Net inflows remained stable, demonstrating the strength of Raiz’s micro-investment model, and consistent contributions softened the blows. Average account balances increased 18.1 percent to $5,996; This shows that customers are investing steadily and increasing their long-term risk.
The product motor continues to hum. The Lite plan, created for first-time investors, has seen rapid progress, reaching 5,867 users, up 86 percent from the previous quarter, fueling the pipeline for future upgrades. Super portfolios also increased by 14 percent annually to 15,196 active accounts. In contrast, broad-based growth in the Plus, Kids and real estate portfolios reflects a platform that attracts capital from multiple angles.
Raiz Invest managing director and chief executive Brendan Malone said: “We remain on track to deliver FY26 UEBITDA in the range of $4.5 million to $5.5 million.”
Raiz is also busy building its next phase of growth with a host of new features designed to transform its investment platform into a full-service hub. The infrastructure for trading on the Australian Securities Exchange under a single owner ID structure is in the pipeline, as is direct access to US equities.
The company says instant payments are also on the way, targeting near real-time investment and more seamless money movement as they lay the foundation for new transaction-based revenue streams.
Behind the scenes, the company is doubling down on AI to deepen engagement and sharpen its edge. From faster digital onboarding and smarter compliance checks to targeted rewards and a personalized financial coach, management says the next wave of tools will make investing more intuitive and automated.
The innovation push is supported by an upgraded data architecture that Raiz says has already increased efficiency and paved the way for faster feature rollouts.
Raiz’s business model appears to continue to resonate with a new wave of retail investors looking for simple, set-it-and-forget-it solutions at its core. By converting daily expenses into investment contributions, Raiz taps into behavioral trends that favor consistency over lump sum investment, a formula that has proven resilient across market cycles.
External conditions may now begin to play in his favor. Retail confidence appears to be returning as stock markets stabilize following the March sell-off, which could translate into stronger inflows and higher engagement on digital platforms.
Looking ahead, the app refresh in the fourth quarter is shaping up to be a significant catalyst, with improved design, shared investment goals, and gifting functionality aimed at increasing retention and social engagement.
With scale building, technology coming to the fore, and a healthy $14.6 million cash buffer at the end of March, Raiz appears to be creating a platform with real staying power. If momentum continues to build, the company’s small-change model could have huge consequences.
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