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.

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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.

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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.

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