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As of the end of June, Raiz had $9.7 million in cash and no debt, which gives it ample financial cushion and, according to management, the company has the potential to pursue M&A opportunities.
Brendan Malone, Managing Director and CEO of Raiz Invest, said: “Over the past year, our focus has returned to our core Australian business and we are pleased to see positive momentum, with strong revenue growth, increased engagement with our customers, and positive operating cash flow and EBITDA. We have expanded our product portfolio and our customers are increasingly using a range of products, resulting in increased account balances and FUM.”
According to management, the partnership with State Street Global Advisors – the world’s fourth-largest asset manager with US$4.42 trillion (A$6.55 trillion) under management – is expected to drive new product innovation, particularly exchange-traded funds (ETFs), and improve financial literacy among its client base.
Raiz’s fintech platform has largely driven micro-investing in Australia. Launched in 2016 under a perpetual licensing agreement with US-based Acorns, the company makes investing accessible to everyone by allowing users to invest spare change from everyday purchases into a diversified portfolio.
Raiz has achieved positive operating cash flow for four consecutive quarters, ultimately achieving $3.6 million in net cash inflow, which undoubtedly proves the great value and scalability of the software as a service (SaaS) model.
With total cash reserves of nearly $14 million following the fundraise, the company is currently generating strong cash flow, and both customer and FUM are booming, and it looks like the company will have a stellar FY2025.
Is your ASX listed company doing anything interesting? Contact details: mattbirney@bullsnbears.com.au
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