Raiz Hits $2bn FUM, Active Customers Up 8% Despite Fee Hike
Raiz Invest has hit a record $2 billion in funds under management, driven by strong customer growth and innovative product launches. The fintech’s latest quarter also saw strategic partnerships expand its market reach.
- Record $2 billion funds under management, up 32.5% year-over-year
- Active customers increased 8% to 335,542 despite recent fee hike
- Launch of Raiz Lite for first-time investors and Raiz Academy for financial education
- Strategic partnerships with State Street Investment Management and KFC
- FY26 UEBITDA guidance maintained between $4.5m and $5.5m
Strong Growth Amid Fee Increase
Raiz Invest Limited (ASX, RZI) has reported a robust start to fiscal year 2026, with funds under management (FUM) reaching an all-time high of $2 billion. This milestone represents a 32.5% increase compared to the same quarter last year, underscoring the company’s accelerating momentum in Australia’s competitive fintech space. Notably, this growth came despite a fee increase implemented in August 2025, which typically risks customer attrition.
The company’s active customer base grew 8% year-over-year to 335,542 accounts, with a quarterly increase of 1.9%. This suggests strong customer loyalty and effective retention strategies, as churn remained minimal following the price adjustment. Raiz added over 6,200 net new active customers in the quarter, a marked improvement from previous periods.
Innovative Product Launches Drive Engagement
Raiz’s product innovation played a key role in attracting and retaining customers. The launch of Raiz Lite, a low-cost entry plan tailored for first-time investors, provides a simplified investment option with three portfolio choices focused on Exchange Traded Funds (ETFs). Early data shows that more than 30% of new customers who started with Raiz Lite have upgraded to higher-value plans, indicating the product’s effectiveness as a gateway.
Complementing this is Raiz Academy, an online education platform designed to enhance financial literacy and empower users to make informed investment decisions. This initiative aligns with Raiz’s mission to democratize wealth-building tools across all demographics.
Expanding Strategic Partnerships
Raiz also expanded its strategic partnerships during the quarter. A joint marketing campaign with State Street Investment Management promoted the SPY ETF, which tracks the S&P 500, and saw a notable increase in portfolio holdings. Additionally, a new alliance with KFC aims to boost financial education among KFC employees through digital engagement via the Raiz app, reflecting Raiz’s commitment to broadening its reach beyond traditional investor segments.
The company’s diversified product suite showed strong growth across all offerings, including Plus Portfolios and Kids Portfolios, which grew 9% and 8% quarter-over-quarter respectively. The Raiz Super Fund also attracted more customers, up 19% year-over-year, signaling growing interest in retirement-focused investment products.
Outlook and Market Position
Raiz’s management reaffirmed guidance for FY26 underlying EBITDA between $4.5 million and $5.5 million, supported by ongoing customer growth and net inflows. CEO Brendan Malone highlighted the company’s focus on increasing customer lifetime value through multi-product engagement and strategic partnerships, while also exploring organic growth and potential acquisitions.
As Raiz continues to innovate and expand its footprint, it positions itself as a formidable player in Australia’s fintech and wealth management landscape, balancing growth with prudent financial management.
Bottom Line?
Raiz’s record FUM and product innovation set the stage for sustained growth, but upcoming financial reports will reveal if momentum holds post-fee hike.
Questions in the middle?
- Will customer churn remain low following the fee increase in the longer term?
- How will Raiz’s new educational platform impact customer retention and acquisition?
- What potential acquisitions or partnerships might Raiz pursue to accelerate growth?
