The Raiz Invest Ltd (ASX: RZI) share price is on the move this afternoon, climbing 8.98% to $1.76.
Shares in the investment platform are pushing higher after the company announced a business update for June.
Raiz share price jumps on June update
Investors are driving the Raiz share price higher on Tuesday after the company announced a strong finish to the financial year.
According to the update, the company recorded a 4.5% month-on-month and 86.7% year-on-year (YoY) increase in active global customers to 456,927 as at 30 June.
Raiz said the growth was underpinned by growing momentum in the Australian market, delivering a year-on-year increase of 22.0% in active customers to 272,976 and 76.3% increase in funds under management to $799.64 million.
The company launched in Indonesia in March 2019 and Malaysia in June 2020. Both regions are in their early days, reporting a respective 117,923 and 66,028 active customers.
Management commentary
Raiz Invest managing director George Lucas was pleased with the company's growth in FY21, saying:
Raiz finished the 2020-21 financial year on a high note. We remain well placed to hit our target of $1 billion in Funds under Management (FUM) by the end of calendar 2021. We are very pleased with the 30 June 2021 FUM of $800 million that is above budget. In the past 12 months, FUM has grown 76.3%.
Lucas shed light on the company's strategy to grow key metrics.
The introduction of new products, such as custom portfolios and opening up the platform to self managed super funds (SMSFs), have helped accelerate FUM growth which is growing faster than active customers. It means we are growing the life-time value of each customer by increasing revenue per customer, demonstrating the benefits of the Raiz team delivering on our stated growth strategy.
In addition, he said Raiz was focused on growing the "favourable market opportunity in Southeast Asia".
We also saw growth pick up in Southeast Asia in June, with both Indonesia and Malaysia enjoying double digit increases as they move on from the fasting month. Indonesia saw active customers grow 10.0% to 117,923, with Malaysia seeing growth of 10.6% to 66,028. We remain confident our long term strategies for both countries are on track.
Raiz share price snapshot
The Raiz share price has rallied a solid 75% year-to-date, with most of its gains occurring at the start of the year between January and February.
The company's shares experienced sharp selloffs in late February and late April, coinciding with the broader weakness of the S&P/ASX 200 Info Tech Index (ASX: XIJ) index.
The Raiz share price has rallied strongly today, touching a 3-month high of $1.76.
