# RZI - Raiz Invest



## System (14 May 2018)

Raiz provides financial services through its mobile first micro-investing platform which offers its customers an easy way to regularly invest either small or large amounts of money using the Raiz application or through the Raiz website.

Through the Raiz platform, Raiz customers are able to automatically invest, through their Raiz Investment Account, into a chosen diversified portfolio of exchange traded funds (ETFs) on the ASX. The minimum account balance required before a Raiz customer can commence investing on the Raiz platform is just $5. There are four different ways in which customers can make contributions to their account: they may make a lump sum deposit; activate "round-ups" (being the automatic investing of a customer's virtual 'spare change'); setup a regular savings plan; or through Raiz Rewards (formerly, Found Money).

Since its launch in Australia in February 2016, Raiz has amassed over 440,000 customer sign-ups, 155,000 active monthly customers and $170 million in funds under management.

It is anticipated that RZI will list on the ASX during June 2018.

https://raizinvest.com.au


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## Navtej (16 May 2018)

Opinions on success of this stock ? 

I started using this app during university to save a little money; it was nice to interact with however never used the rewards aspect.


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## Wysiwyg (18 May 2018)

I thought the Acorns round up was a great idea & joined out of curiosity. For me the account is doing better than I expected as it is incredible what little amounts over time can do plus ETF growth plus dividends reinvested. Set and forget and it is better than any retail outlet thief being that it works for you.

Regarding the capital raiz-ing, not for me:



> The prospectus lodged on Wednesday contains no forward-looking financial statements but says the company made $1.04 million in revenue and a loss of $2.43 million in the full financial year 2017. In the first half of 2018, it made the same amount of revenue – $1.04 million – and a net loss of $2.02 million.


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## SailaSaila (18 July 2018)

A large sell off from some Instos at the IPO. RZI is now gaining traction. A good source indicates $2.56 by end of the year. I'm still currently buying up


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## McLovin (18 July 2018)

SailaSaila said:


> A large sell off from some Instos at the IPO. RZI is now gaining traction. A good source indicates $2.56 by end of the year. I'm still currently buying up




I got an IM for the IPO for this. The valuation was absolutely ridiculous. I almost fell off my chair. Fintech valuations generally are stupid at the moment, because it's the flavour of the month. Late last year I got an IM for a seed round fintech that had a crazy valuation considering it was still just a concept (and not a very original one either!). I actually think the RZI product is a great idea but hardly a world beater, the big issue they have is how expensive will customer acquisition become in the future? Just look at how sales expenses are chasing revenue every half. If this is successful then banks will copy it (as a product it seems like something that would sit right in, say, ING Direct's wheelhouse) and they already own the customers so their cost of acquisition is zero...or almost zero. So then the question is what is the cost of replicating this product? A: A lot less than $60m.

The problem with a lot of these fintechs is they're modest step-up improvements in what's currently available, but they're not revolutionary – or in overused tech parlance "disruptive" – although they're being valued as though they are.


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## JTLP (18 July 2018)

McLovin said:


> I got an IM for the IPO for this. The valuation was absolutely ridiculous. I almost fell off my chair. Fintech valuations generally are stupid at the moment, because it's the flavour of the month. Late last year I got an IM for a seed round fintech that had a crazy valuation considering it was still just a concept (and not a very original one either!). I actually think the RZI product is a great idea but hardly a world beater, the big issue they have is how expensive will customer acquisition become in the future? Just look at how sales expenses are chasing revenue every half. If this is successful then banks will copy it (as a product it seems like something that would sit right in, say, ING Direct's wheelhouse) and they already own the customers so their cost of acquisition is zero...or almost zero. So then the question is what is the cost of replicating this product? A: A lot less than $60m.
> 
> The problem with a lot of these fintechs is they're modest step-up improvements in what's currently available, but they're not revolutionary – or in overused tech parlance "disruptive" – although they're being valued as though they are.




I also remember reading that this is pretty useless for people putting low values in, as the fees alone absolute crush your investment.


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## luutzu (18 July 2018)

JTLP said:


> I also remember reading that this is pretty useless for people putting low values in, as the fees alone absolute crush your investment.




So it's like a money-jar/piggybank for your spare change. Only difference is someone else is "managing" it and charges you a fee. That and unlike that piggy in the corner somewhere, when you come to crack it open there might be nothing there.

Though I think there's some merit to collecting spare change into a fund to invest... the real issue will be the management fees and general admin making it worthwhile for the savers/investors.


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## McLovin (18 July 2018)

JTLP said:


> I also remember reading that this is pretty useless for people putting low values in, as the fees alone absolute crush your investment.




Which is why I reckon a product like this will work much better inside a bank or any insto that already has a relationship with the user. The marginal cost to provide this service wouldn't be that high, but RZI has to cover all its fixed costs as well which means it needs serious scale to be price competitive. The returns post expenses just aren't worth the effort to sign up. I wonder what their churn is?


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## luutzu (18 July 2018)

McLovin said:


> Which is why I reckon a product like this will work much better inside a bank or any insto that already has a relationship with the user. The marginal cost to provide this service wouldn't be that high, but RZI has to cover all its fixed costs as well which means it needs serious scale to be price competitive. The returns post expenses just aren't worth the effort to sign up. I wonder what their churn is?




I think banks are already doing it aren't they? They just use the deposits, lend out, leverage up etc., and have the gov't guarantee the depositors if it all goes south. 

So RZI should just get a banking licence, pay depositors a higher interest rates than the banks. Don't do anything too stupid with the float... But then they can't make money no matter what happens... risk and some investment ability are for suckers I supposed.


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## jwright02 (26 March 2019)

What is everyone's thoughts on Raiz now? They don't seem to be performing as well as they were originally meant to...


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## So_Cynical (27 March 2019)

jwright02 said:


> What is everyone's thoughts on Raiz now? They don't seem to be performing as well as they were originally meant to...




Its a wanky business, they are kind of trying to create something outa nothing.


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## jwright02 (27 March 2019)

So_Cynical said:


> Its a wanky business, they are kind of trying to create something outa nothing.



Yeah I think so too, their fee structure doesn't make too much sense either..


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## greggles (5 August 2019)

So_Cynical said:


> Its a wanky business, they are kind of trying to create something outa nothing.




RZI up from 44c to 94c in the last month or so. Not bad at all.

Funds under management now $373 million, up 67.9% in the last 12 months. Is the Raiz model the future of managed funds? It's sure starting to seem like it. I know people who use it and they love being able to track everything from an app.


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## So_Cynical (5 August 2019)

greggles said:


> RZI up from 44c to 94c in the last month or so. Not bad at all.




Share price has shot up, cash burn is about 240K per month and the average account size is $1500, i see the fees went up in July - active accounts with less than 10K, pretty much all accounts judging by the average will incur a monthly maintenance fee of $2.50, its still very much something out of nothing via an app.


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## frugal.rock (17 February 2020)

So_Cynical said:


> its still very much something out of nothing via an app.



From their latest report, seems like things will get a bit active. 
Plans to introduce a MasterCard connected with Bundll through Flexigroup.
Starting up in Malaysia and Indonesia.
Also, plans for insurance offerings.
Will do some due diligence on this one, but first appearance seems that "something out of nothing" appears to be growing... faster than a stalagmite I might ad.
I don't hold.
F.Rock


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## Clansman (18 February 2020)

frugal.rock said:


> From their latest report, seems like things will get a bit active.
> Plans to introduce a MasterCard connected with Bundll through Flexigroup.
> Starting up in Malaysia and Indonesia.
> Also, plans for insurance offerings.
> ...




It's a stock that Iuutzu didn't like so that's as close as you can get to a guarantee of ongoing growth


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## frugal.rock (16 February 2021)

Clansman said:


> It's a stock that Iuutzu didn't like so that's as close as you can get to a guarantee of ongoing growth



Hmmm, I see you weren't joking, now.
Was one of my considerations for the yearly comp....
Obviously, the tap has been turned on this year.
I don't hold, unfortunately.


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## Dona Ferentes (20 May 2021)

frugal.rock said:


> Was one of my considerations for the yearly comp....
> Obviously, the tap has been turned on this year.
> I don't hold, unfortunately.



Probably lucky not to hold.  $2 was the peak, a bit of Covid exuberance, perhaps.



> Since launching in 2016 Raiz has achieved solid growth, amassing more than 1.50 million downloads,  1,590,000 signups, with over 419,000 active monthly customers and over $694 million funds under  management as at 31 March 2021



And end April, in Aust some 429,000 active customers and $737M under management, retail being $640M and superannuation some $87M.

There has been  a cap raising of $10M in April with a SPP looking for a further $3M, both at $1.50 a share.

Currently $1.30

And if the nimble little conjurers were doing so well, why the tilt, looking to acquire Superestate Pty Ltd, a fund manager of a residential REIT and the promoter of the Superestate superannuation fund.



> _Through the proposed acquisition of Superestate Raiz hopes to be able to offer investors access to residential real property as an asset class – both inside superannuation and outside through the Raiz platform offering.  Raiz listens to its investors and responds by providing access to alternative asset classes – like Bitcoin (which investors can access through the Raiz platform outside superannuation) and, following successful completion of the Superestate acquisiton – residential real property_


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