The Raiz Invest Ltd (ASX: RZI) share price is flying more than 16% higher today, following a positive trading update from the company.
What did Raiz announce?
Raiz provided the market with an update on its performance for January 2021. The fintech company is a mobile-focused micro-investing platform that operates in Australia, Indonesia and Malaysia.
In its release, Raiz said total funds under management (FUM) in Australia had a growth spurt of 5.5% for the month, bringing total FUM to $639.08 million.
In addition, the company reported a 9.5% increase in active customers in Australia to a total of 376,198 users. Strong growth in active customers was also achieved in Indonesia and Malaysia, with the company reporting a 15.6% and 21.8% increase in users for January respectively.
The company also launched its custom portfolio in late January. According to management, more than 3,200 clients have engaged the new service, representing more than $14 million in Australian FUM.
More about Raiz
The company's platform enables users to micro-invest the remaining round up of everyday purchases in exchange-traded funds (ETF). It also allows users to open a superannuation fund.
The company's mobile financial platform offers users the ability to invest in a range of different funds, depending on the user's risk tolerance. Each fund allocates across a wide variety of financial products including Australian and international shares, fixed-interest investments and cash. Raiz recently added a hyper-aggressive 'Sapphire' portfolio which included a 5% exposure to bitcoin.
Raiz charges a flat monthly investment fee for each user. As a result, FUM and active customers are key metrics to the company's ability to generate recurring revenue.
The Raiz share price has surged more than 63% since December 2020. At the time of writing, the Raiz share price is trading at an intraday high of $1.54, up 16.16%.
