As of the end of June, Raiz had $9.7 million in cash and no debt, giving it a comfortable financial cushion and, according to management, the potential to look for merger and acquisition opportunities.

Raiz Invest managing director and chief executive officer Brendan Malone said: “In the past year, our focus has returned to our core Australian operations and we are pleased to see positive momentum with strong revenue growth, increased engagement with customers, positive operating cash flow and positive EBITDA. We expanded our product suite and our customers are increasingly utilising multiple products, leading to higher account balances and FUM.”

According to management, the collaboration with State Street Global Advisors – the fourth-biggest asset manager worldwide, with US$4.42 trillion (AU$6.55 trillion) under management – is expected to drive new product innovations, especially into exchange traded funds (ETFs) and improve the financial literacy of its customer base.

Raiz’s fintech platform has largely driven micro-investing in Australia. Launched in 2016 out of a perpetual licence agreement with US-based Acorns, the company allows users to invest spare change from everyday purchases into a diversified portfolio, making investing accessible to everyone.

With four consecutive quarters of positive operating cash flow now under its belt, culminating in a net cash inflow of $3.6 million, Raiz is certainly proving the huge value and scalable advantage of a software-as-a-service (SaaS) model.

Sitting on a total cash pile of almost $14 million post-placement, a current strong positive cash flow with burgeoning growth in both customers and FUM, the company appears set for a stellar 2025 financial year.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au