Fintech RAIZ Invest Ltd (ASX: RZI) has grown its active customer base by 54% in the half-year ending 31 December.
The mobile financial services provider reported $5.2 million in revenue. This was a 17% boost compared to the same period in 2019.
It also reduced its net loss by 33%, to be $655,000 down for the half-year.
The company also grew its Australian funds under management (FUM) to $605.6 million, which was a 33.5% increase.
Raiz allows its users to round up everyday purchases and put the cents towards an investment portfolio. The micro-investing platform now has 343,573 active users.
Comments from Raiz management
Raiz chief executive George Lucas said the boost in FUM gave him confidence about hitting the target of $1 billion by the end of this year.
“Growth [is] being driven by an increase in both active customers and revenue per customer, strong customer loyalty, the low cost of acquiring customers, and the successful rollout of new products and services.”
Raiz’s share price already saw a 16% boost in a single day earlier this month after the market approved of its January growth numbers.
This may explain why the stock was down 1.32% in early trade on Tuesday morning, going for $1.88. It was just 90 cents one year ago.
Geographic and product expansion
Lucas said the business’ growth in Indonesia and Malaysia continued to exceed expectations.
“We remain confident that we will be able to repeat the success of the Australian business model by introducing new products to our expanding customer base and increasing revenue per customer in these geographies.”
Last May it introduced an aggressive investment portfolio called Sapphire, which even had 5% exposure to Bitcoin.
Lucas said the company has “a pipeline of new products”.
“And we are working on new target geographies for expansion. These initiatives will add to our current growth momentum over the coming 6 months.”
The company was founded in 2016 as the Australian version of the US brand Acorns. Two years later, it changed its name to Raiz after it broke away from the international relationship.