Fee Hikes and New Plans Test Raiz’s Customer Loyalty Amid Growth

Strong Growth Momentum

Raiz Invest Limited, a leading Australian micro-investing platform, has announced robust first-quarter results for FY26, marking a significant milestone with $2 billion in funds under management (FUM) as of 30 September 2025. The company’s active customer base expanded to 335,542, underscoring its growing appeal among everyday Australians seeking accessible wealth-building solutions.

These figures reflect a 30% increase in FUM and a 54% rise in active customers compared to the previous year, signaling sustained traction despite a competitive fintech landscape. Raiz’s focus on automated, recurring investments continues to drive consistent inflows, with over half of net inflows coming from these steady contributions.

Earnings Outlook and Fee Strategy

Building on this momentum, Raiz has raised its FY26 underlying EBITDA guidance to a positive range of $4.5 million to $5.5 million. This optimistic forecast is predicated on continued growth in customers, FUM, and netflows, assuming stable market conditions.

In a strategic move to enhance revenue, Raiz implemented a $1 monthly fee increase across its existing plans, raising fees to $5.50 for Raiz Lite and $6.50 for Raiz Plus. Simultaneously, it introduced a new entry-level plan priced at $2.50 per month, aimed at attracting first-time investors. Early indications suggest this tiered pricing approach is effective, with lower churn rates observed compared to previous fee hikes and a growing preference for the higher-value Plus plan.

Innovative Partnerships and AI Integration

Raiz is leveraging strategic partnerships to broaden its product suite and deepen customer engagement. Notably, its collaboration with State Street Investment Management, the world’s fourth-largest asset manager, is enhancing Raiz’s offerings through access to new ETFs, superannuation portfolios, and a financial education knowledge hub. This partnership also facilitates the creation of a Raiz Customer Sentiment Index, combining proprietary data with global market insights.

Additionally, Raiz is investing in generative AI tools to personalise marketing campaigns and improve customer conversion and retention. The company reports a 6% uplift in same-day conversion rates in Q4, driven by targeted messaging tailored to distinct customer segments such as young professionals and budget-conscious families.

Award-Winning Platform and Market Position

Raiz’s commitment to innovation and customer experience has been recognised with multiple awards, including the 2025 Canstar Innovation Excellence Award for Raiz Plus portfolios and being named among CNBC’s World’s Top Fintech Companies. Its product ecosystem now includes Raiz Invest Super, Raiz Rewards, Raiz Kids, and Raiz Academy, catering to diverse investor needs and life stages.

With a strong balance sheet, $13 million in cash reserves, and a market capitalisation of approximately $85 million, Raiz is well-positioned to capitalize on the growing demand for accessible investment platforms in Australia. The company’s scalable technology and customer-first culture underpin its strategy to expand market share and enhance lifetime customer value.