ASX-listed microcap fintech and investment app developer Raiz (ASZX:RZI) has announced it will quit operating in Malaysia, effectively exiting the country.
The company makes an app that lets users allow the app to skim off the top of day-to-day transactions and make microinvestments per the user’s desire. One of its major shareholders is an investment arm of Seven West Media (ASX:SWM).
“The decision to close the Malaysian Operations will enable Raiz to focus on strengthening and expanding its Australian business,” CEO Brendan Malone said.
“With our continued product innovation and our marketing campaign, we are confident the Raiz Australian business will continue to grow and deliver a strong economic performance for shareholders.”
There wasn’t much more forthcoming than that.
In its last full year from 2023, the company reported funds under management of $1.18B and 688,000 active monthly customers.That active userbase was spread across Malaysia and Indonesia as well as Australia.
For comparison, in Q3 of FY24 the company reported 303,938 Australian active customers.
There is one thing worth noting – the company considers an ‘active customer’ any account with A$1.00 or more. In Q3FY24, the company reported average revenue per user of $75.00. it also pointed towards an AFL/AFLW media campaign deal with Seven West media.
On Friday the company announced it had decided alongside its Malaysian JV partners to cease the business after a strategic review.
“The Malaysian entity has sufficient capital to fund the expenses relating to the closure with JDV having previously committed a further RM3m to ensure a structured, coordinated and timely wind down process,” the company wrote on Friday.
RZI last traded at 37.5cps.