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ERS dents Raiz Super by $13m

Raiz's superannuation offering paid out $13 million as a result of the early release of super scheme but managed to keep funds under management afloat.

The micro-investing platform reported superannuation assets grew by 27% on the prior corresponding period to $81 million, despite taking a hit from the early release of super scheme.

Members withdrew $13 million between April and December 2020, the firm's half-year accounts show.

Raiz Super launched in 2018 with Diversa acting as its trustee. Members' money is invested in ETFs listed on the ASX, which sit across six options ranging from conservative to higher risk portfolios.

Overall, Raiz saw funds under management increase by 33.5% to $605.6 million in the six months to December 2020. The number of customers grew 54% to 343,573.

Despite revenues increasing by 17% to $5.2 million year on year, the group made a $3 million net loss for the period.

The micro-investing platform generated most of the revenue of $4.7 million, growing nearly 20%.

Raiz Invest chief executive George Lucas sees FUM growing to $1 billion by the end of this year.

"The growth in Indonesia and Malaysia continues to exceed our expectations and we remain confident that we will be able to repeat the success of the Australian business model by introducing new products to our expanding customer base and increasing revenue per customer in these geographies," he said.

"We will continue to strengthen board and management; we have a pipeline of new products; and we are working on new target geographies for expansion. These initiatives will add to our current growth momentum over the coming six months."

Read more: Raiz SuperDiversaGeorge LucasIndonesiaMalaysia
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