KUALA LUMPUR – Australian-based micro-investment and fintech firm Raiz Invest Ltd is set to close its local subsidiary Raiz Malaysia Sdn Bhd.
The firm, a joint venture between Jewel Digital Venture Sdn Bhd (JDV) and Raiz Invest Australia Ltd, said the partners agreed to close the business following a strategic review.
“The Malaysian entity has sufficient capital to fund the expenses relating to the closure with JDV, having previously committed a further RM3 million to ensure a structured, coordinated, and timely wind-down process.
“A comprehensive and orderly closure process will be implemented in phases to ensure the secure and efficient handling of client assets,” the firm said in a statement on Friday.
Malaysian operations will be classified as discontinued in Raiz Invest’s financial report, the firm added.
In the same statement, Raiz Invest managing director and chief executive officer Brendan Malone said the decision allowed the firm to focus on strengthening and expanding its business in Australia.
“On behalf of the board, I would like to thank our partner for their role in the joint venture partnership over the last four years.”
Raiz Invest is a mobile-first financial services platform with features for users to invest through its app or website while information and finances are gathered on a remote server with “bank-level” security and data encryption.
According to its website, it allows users to learn about investing without affecting their lifestyle by automatically and regularly investing small amounts.
JDV is also a fintech firm and a wholly-owned subsidiary of PNB Equity Resource Cooperation Sdn Bhd – a subsidiary of fund management firm Permodalan Nasional Bhd (PNB).
As of December 31, 2020, PNB has assets amounting to RM322.6 billion across 14.5 million account holders.
Besides Malone, Raiz Invest’s board of directors include Amanah Saham Nasional Bhd CEO and executive director Muzzaffar Othman, and PNB chief strategy officer Fadzihan Abbas Mohamed Ramlee, among others. – July 7, 2024