Investing app for teens Drip Invest becomes part of ASX-listed Raiz

Drip Invest, a Perth-based educational investing app for teens launched through corporate venture fund BetterLabs in 2022, has become part of listed company Raiz Invest (ASX: RZI) with users being asked to withdraw their funds within a month.

Raiz has not made an announcement to the ASX about the deal, but Drip Invest is advising users that the app will officially sunset on 11 August and is instructing them how to set up an account on the Raiz Kids service which as of the end of March had just under 30,000 active parents.

Drip, which since inception has acted as a distributor for Cache Fund, insists all users' investments are still "safe and active" with Cache Invest, which investors will need to contact directly if they haven't withdrawn funds from the app by the cut-off date.

A spokesperson for Raiz describes the deal with Drip Invest as a "marketing arrangement".

"Raiz is pleased to announce a new arrangement with Drip Invest as part of its ongoing investment in marketing and financial education initiatives," the spokesperson says.

"This arrangement allows Raiz to market its products directly to Drip’s customer base, offering them the opportunity to open a Raiz account, subject to their consent to receive marketing communications from Raiz.

"Through this arrangement, Raiz will also gain access to Drip’s established marketing relationships, enabling broader promotion of the Raiz offering and increased brand visibility."

In a statement on the Drip Invest website, co-founders Isabelle Charter and Maria Consuelo Luque thanked every parent, teen and family who joined them on their mission "to change the way families talk about money".

"We’re thrilled to announce that Drip Invest is joining the Raiz family," they said.

"This is a major milestone for us, and it’s all thanks to you.

"Every parent who opened a Drip account, every teen who made their first investment request, and every family who started talking about money around the dinner table: you made this possible. Together, we sparked something powerful, a movement to raise financially confident kids with strong money habits that last a lifetime."

The co-founders described Raiz as one of Australia’s most trusted names in investing, sharing their vision for empowering young Australians with real financial skills. 

"As Drip transitions, you'll have access to an even stronger platform, backed by the same values, and with even more tools to help your family grow," they said.

"Drip will officially sunset on August 11th, but this isn’t the end of the journey. It’s the beginning of something even bigger. Your belief in what we’re building has made all the difference."