Market volatility slows down customer growth for micro-investing platform Raiz

Sydney-headquartered micro-investing platform Raiz Invest (ASX: RZI) has reported its strongest quarterly net inflows since the September quarter of 2021 at $60 million, despite softer customer acquisition in March due to market volatility and economic uncertainty around US tariffs.

A slower March offset strong growth in January and February, and meant the number of net new active customers was down 6 per cent quarter-on-quarter at 6,973.

This signifies growth of just 2.2 per cent to 324,968 active customers, in contrast to a 7.7 per cent jump in kids portfolios to 51,662.

Raiz's kids portfolios do not currently attract fees, but in moves reminiscent of the Commonwealth Bank's (ASX: CBA) Dollarmite playbook that established the bank accounts of countless Millennials, Raiz highlights its numbers represent a "growing pipeline of the next generation of customers".

Despite a challenging share market, Raiz also reports that more than 60 per cent of customers are continuing to deposit recurring payments. The company reports a negative market movement for the quarter of $16 million, but the average account balance rose 15.1 per cent to $5,078.

"We are very pleased to deliver these strong quarterly results, with sustained growth in revenue, active customers, ARPU (average revenue per user) and FUM (funds under management), despite challenging market conditions in March," says Raiz Invest managing director and CEO Brendan Malone, a co-founder of the group which listed on the ASX in 2018.

"We are increasing engagement with our customer base, as they use more products and features on our platform and focus on longer-term wealth creation through all market cycles.

"Listening to our customers coupled with our ongoing commitment to product innovation is delivering results, with a strong uptake of Raiz Jars and the continued growth in Raiz Plus portfolios which was recognised as a Winner of the Canstar 2025 Innovation Excellence Awards.

"Our business model is again proving to be resilient through market cycles, and we are well positioned to continue our growth trajectory."

Raiz Jars, which like the kids portfolio do not currently attract fees, are designed for bucketed portfolios and investment strategies oriented towards specific goals from house renovations to school fees or any savings objective the user chooses.

Since the offering was launched in January there are now 15,814 Raiz Jar accounts with $6 million in funds under management (FUM), compared to FUM across the group of $1.65 billion - up 2.7 per cent over the previous quarter and 23.1 per cent year-on-year.

RZI shares were up 15.89 per cent to $0.62 at midday.