- Amateur Australian investor mobile app Raiz Invest might be hitting Malaysian shores, after singing a joint venture agreement with Jewel Digital Ventures.
- Jewel, ultimately owned by Permodalan Nasional Berhad, will be directing it’s portfolio of clients to Raiz’s software, pending a regulatory approval by the Malaysian Government
- Raiz will have 70 per cent interest in the agreement with Jewel funding capital for the remaining 30 per cent interest
The investment mobile app, Raiz Invest has announced to shareholders its plans to expand operations in South East Asia.
The company signed a joint venture agreement with Jewel Digital Ventures, a Malaysian subsidiary ultimately owned by fund management company Permodalan Nasional Berhad (PNB).
Raiz’ appeal to users is the simplified usability to regularly invest small or large amounts of savings into streamlined portfolio through a mobile app or desktop website.
Jewel will be acting as the investment vehicle under PNB to unlock digital operations for current and future fund management customers in the Malaysian market.
PNB currently owns assets under management totalling A$103.9 million over 13.8 accounts, making it one of the largest fund management companies in Malaysia.
The joint venture is in Raiz’s favour at 70 per cent interest with Jewel owning the remainder. As part of the agreement, Raiz will primarily provide their technology for operations while Jewel will provide required capital.
Capital paid by Jewel is condition to a licence grant by the Malaysian government.
Company Chairman Tony Fay says the 33 million population of Malaysia is best approached with the significant presence of PNB.
“By joining forces with a trusted and reputable group such as PNB, we are laying the foundations for sustainable growth in some of the fastest growing markets in the world where there is a genuine appetite for fintech products and services,” he said.
Raiz management is currently awaiting the regulatory licence approval.
“It is anticipated the platform will go live towards the end of CY19 or early in the New Year. The work done on the platform to support the Indonesian launch (anticipated 3Q CY 19) will facilitate an efficient roll out in Malaysia,” Tony said.
Raiz initially launched in 2016, amassing 670,000 sign ups since with 190,000 active monthly customers. Company management currently holds $320 million in funds.
The company was also awarded Australia’s Investment Innovator of the Year in 2017 and 2018 investment Platform Innovator of the Year in 2019 at the FinTech Business Awards and won the 2018 Australian FinTech Award for FinTech Innovation in Wealth Management.
RZI shares remain unchanged today. They continue to trade for 47 cents in a $31.12 million market cap.