- Fintech company Raiz Invest (RZI) has released its half-year report, revealing it ended December with a total comprehensive loss of $2.9 million
- Comparatively, the investment business ended 1H FY20 with a smaller loss of $2.56 million
- The blowout has been blamed on platform refinement, product development, customer acquisition and one-off administrative costs
- The deeper loss also comes despite Raiz recording some positive increases in revenue, active customers and funds under management (FUM)
- Raiz currently manages $605.6 million in Australian funds, and the company’s CEO said it was on track to hit $1 billion in FUM by the end of 2021
- The fintech stock closed out 1H FY21 with $11.13 million in cash and equity after burning through $369,000 on operation activities
- Shares in Raiz Invest have ended the day down 3.16 per cent at $1.84
Fintech company Raiz Invest (RZI) has released its latest half-year report, revealing it ended December with a total comprehensive loss of $2.9 million.
In comparison, the investment business ended the previous half year period with a smaller loss of $2.56 million.
RZI attributed the deepening loss on a range of costs, including platform refinement, product development, customer acquisition and one-off administrative expenses.
The loss came despite the fintech stock posting some positive increases in revenue, active customers and funds under management (FUM).
Specifically, Raiz grew its active customer base by 53.6 per cent to total more than 343,000 active users. Revenue also increased by 17 per cent year on year, to total $5.2 million.
The company finished the half-year with approximately $605.6 million in Australian funds, a 35.5 per cent increase when compared to the end of 2019.
Raiz CEO George Lucas said at that rate of growth, RZI was on track to hit $1 billion in FUM by the end of 2021.
“The continued strong growth in Australian FUM of over 33.5 per cent to $605.6 million gives us confidence that we will reach our target of $1 billion by the end of December 2021,” he explained.
Commenting on the company’s performance, George said Raiz’s international expansion has exceeded their expectations.
“The growth in Indonesia and Malaysia continues to exceed our expectations and we remain confident that we will be able to repeat the success of the Australian business model by introducing new products to our expanding customer base and increasing revenue per customer in these geographies,” he said.
Raiz closed out 1H FY21 with $11.13 million in cash and equity having burnt through $369,000 on operation activities.
Shares in the company ended Wednesday’s trading session down 3.16 per cent, trading at $1.84.