Here's why the Raiz (ASX:RZI) share price is storming 8% higher today

This comes after the release of its performance metrics for July.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Raiz Invest Ltd (ASX: RZI) share price has stormed more than 8% in morning trade.

At the time of writing, shares in the company have backtracked a little to be up 6.11%.

Investors have flocked to buy shares in the fintech company after Raiz released an update earlier this morning.

Here's what Raiz had to announce.

A smiling man points upwards with both fingers in an exaggerated sideways pose.

Image source: Getty Images

Raiz share price higher on performance metrics

The Raiz share price is well in the green today, after releasing its performance metrics for July.

Raiz noted that numbers from its recent acquisition of Superstate were included in its key metrics for the first time.

As a result, the company highlighted that Superestate added $71.6 million to superannuation funds under management (FUM) for a 69.8% increase to $181.00m million. In addition, the acquisition managed to add and an extra 6,073 active customers to the Raiz platform.

Overall, Raiz highlighted continued growth in funds under management (FUM) in Australia.

For July, the company recorded a 4.4% increase in total retail FUM to $ $904.82 million.

In addition, Raiz noted a 69.8% increase in superannuation contributions in July.

In the update, Raiz Managing Director and CEO George Lucas noted that; "Superestate's contribution aside, we were on target to hit our $1 billion FUM by the end of this calendar year".

The company's management also noted that operations in southeast Asia remain on track, reporting a 9.9% increase in active customers to 129,574.

More on the Raiz share price

Raiz is an Australian financial technology (fintech) company that provides users with a mobile-focused micro-investing platform.

Raiz charges users a flat monthly investment fee which comprises more than 60% of the company's revenue. As a result, FUM and active customers are key metrics to the company's ability to generate recurring revenue.

Earlier this year, Raiz completed a $10.2 million capital raise. Funds from the placement were used in the $9.5 million acquisition and integration of fund manager Superstate.

Raiz cited that the acquisition of Superstate would allow the fintech's users access to residential property as an asset class.

Overall, the Raiz share price has performed extraordinarily well in 2021. Including today's price action, shares in the Aussie fintech have doubled since the start of the year.

At the time of writing, the Raiz share price is trading more than 5% higher for the day. Shares in Raiz stormed more than 8% earlier, after hitting an intraday high of $1.95 earlier.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ASX Share Market News

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

Let's take a look.

Read more »

A gold gloved hand is held up in a stop gesture.
Opinions

Up 80% in 2 years with a 15% dividend yield, expert says sell this ASX ETF now

Let's take a look.

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

Are these oversold ASX shares too good to pass up?

These ASX shares could be bargain buys right now.

Read more »

Red line going down on an ASX market chart, symbolising a falling share price.
ASX Share Market News

Why are PLS shares still falling? Here's what's behind the sell-off

Lithium prices are cooling, dragging PLS shares lower once again.

Read more »

One girl leapfrogs over her friend's back.
Share Gainers

13 ASX 200 shares that doubled in value in FY26

These were the double-baggers of FY26.

Read more »

A group of hands up in the air as if signifying a hearty vote in favour of a motion.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Brokers believe that now could be the time to buy these shares.

Read more »

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands.
Broker Notes

Buy, hold, sell: Life360, South32, Wesfarmers shares

Let's take a look at three fresh buy, hold, and sell calls from the experts. 

Read more »

Time to sell written on a clock.
Broker Notes

Sell alert! Why these experts are calling time on Endeavour and PLS shares

Two leading analysts expect mounting headwinds for Endeavour and PLS shares. But why?

Read more »