Venn Brown sat down with Brendan Malone, CEO of Raiz Invest, to discuss the group’s technology, expanding product offering, market traction and long-term plans.
Making investing & saving easy: Raiz Invest offers a mobile-first investment and savings platform that removes traditional investment barriers. Raiz aims to be a modern-day savings account alternative and superannuation provider, simplifying access to investment opportunities and improving financial literacy amongst the wider public. Raiz allows people to invest as little as $5 with features like automated “round-ups” that invest spare change into diversified ETF portfolios and fractional ownership of shares.
Stable revenue model: Raiz derives revenue from fixed monthly account fees, asset management fees for larger balances, advertising, and its Raiz Rewards cashback program. The majority of revenue is from the flat account-keeping fee ($4.50 or $5.50 per month) for accounts under $25,000, which provides consistent income irrespective of market performance.
Significant growth opportunities: Key growth drivers include expanding the user base and increasing average revenue per user (ARPU), notably through Raiz Plus and superannuation offerings. With only a tiny share of the massive Australian investment and superannuation market, Raiz sees strong potential in moving users up the value chain and being part of customers’ entire savings lifecycle, starting with Raiz Kids and progressing users to Raiz superannuation. Raiz’s short-term goal is to generate $50 million in revenue from 500,000 users with a $100 ARPU.
Positive cash flow: Raiz has delivered multiple periods of positive free cash flow, supported by its diversified income streams and lean operating model. Its scalable technology infrastructure ensures incremental customer growth, widens margins and improves cash generation, supporting the group’s strategic investment goals while maintaining financial discipline.
Outlook: Over the next three to five years, Raiz aims to be a materially larger business with an expanded product suite and broader customer base. Upcoming offerings include direct ASX300 investments and enhanced family-focused features. Despite challenges in customer acquisition, the company remains focused on sustainable, long-term growth through innovation, education, and customer engagement.