It is with a heavy heart that Raiz will be ceasing operations in Malaysia. As the only platform that allowed Malaysians to invest their spare change, Raiz’s departure marks the end of a unique investment opportunity for many. After four years, Raiz Invest Limited has decided to exit Malaysia, ending its joint venture with Jewel Digital Venture Sdn Bhd (JDV) and Raiz Invest Australia Limited.
The decision follows a strategic review where the partners agreed to close the business. Raiz Malaysia, which launched in July 2020, assured its users that it has sufficient capital to cover closure expenses, with JDV committing an additional RM3 million to ensure a structured and timely wind-down process. The closure will be implemented in phases to ensure the secure and efficient handling of client assets.
Brendan Malone, Raiz Invest Managing Director and CEO, stated,
“The decision to close the Malaysian Operations will enable Raiz to focus on strengthening and expanding its Australian business. With our continued product innovation and our marketing campaign, we are confident the Raiz Australian business will continue to grow and deliver a strong economic performance for shareholders.”
Why Is Raiz Leaving Malaysia?
As the fintech market matures, certain realities become apparent. One industry insider remarked,
“This is naturally going to happen as the market matures. Profit margin in fintech is tiny. Only big players with deep fundings will last. They will build an ecosystem to integrate deeply into our daily lives. Best example – TNG eWallet with payments, insurance, loan.”
Another expert added,
“Registration, legal, authorization, and tax costs are bigger than purchasing power in the market.”
The challenges in maintaining a profitable operation in a small market like Malaysia, combined with high operational costs, contributed to Raiz’s decision to exit.
Raiz: A Unique Investment Tool
Raiz was more than just an investment app. It allowed users to round up everyday purchases and invest the spare change in exchange-traded funds (ETFs). With features like auto-deducts, cashbacks that were reinvested, and the ability to invest for your children’s future, Raiz provided a simple and engaging way to start investing. A small initial investment of just RM5 was all it took to begin.
What’s Next for Raiz Users?
With Raiz exiting the Malaysian market, many are left wondering where to turn for a similar investment experience. One promising alternative is Versa, a platform that, while not identical, offers some comparable benefits. Rather than rounding up spare change, Versa allows for auto-debit monthly investments. Many users praise its user interface and experience (UI/UX) as superior to other investment apps.
The exit of Raiz from Malaysia raises questions about the market’s readiness for such innovative financial products. Is the profit margin simply too small to sustain such businesses here? Despite Raiz’s user-friendly app and innovative features, it seems that the operational costs and market conditions proved too challenging.
For those looking to continue their investment journey, consider exploring Versa. And don’t forget, if you sign up using my code (A5HMGSYD), you’ll get RM10 free on your first investment.
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One Response
Malaysia’s small market size has always been its major weakness. Many ambitious projects have died because of it.
RAIZ is another typical and depressing example of ambitious Malaysian projects that fail locally but strike huge success overseas.
What a shame.