Douugh flags acceleration in FY22 user growth, shares edge higher off recent lows
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Fintech player Douugh (DOU ASX) edged higher off its recent lows this morning, after providing an update on user growth in its key US markets.
The company said it now has almost 40,000 users on its financial wellness app, having gained ~5,000 users in the month of August.
Those gains followed the launch of its app onto Android phones in July, Douugh said.
Shares in the company edged above 9c in morning trade.
The fintech surged onto the scene late last year, raising $6m from investors at 3c a share before soaring above 30c.
It then raised another $12m from investors at 22c a share in December, but has since struggled for traction in FY21.
Douugh’s initial strategy was to drive growth into the US market by combining its financial management app with a partnership-based approach that gave it access to relevant banking licences.
The company kicked things off by partnering with North Dakota-based lender Choice Bank, which gave Douugh a base from which to offer its customers a federally-licensed bank account and debit card services.
Douugh said its ~40,000 users have now deposited around $15m into their accounts (an average of $375 per account), and spent around $5m (an average of $125).
It also said customers have deposited around $4.5m as part of its Douugh Wealth financial management service, which launched late last month.
Using Douugh Wealth, customers can allocate their funds to various ‘portfolio jars’ with different risk profiles curated by Douugh’s investment team, for a fixed monthly fee.
With the launch of its wealth management service and expanded distribution onto Android devices, Douugh CEO Andy Taylor said the company is now “in a strong position to rapidly onboard new customers and optimise activation rates”.
Taylor also said the company was focused on building out its user-base in the Australian market, following the launch of its ‘Goodments by Douugh’ investing app in June.
The platform competes against other low-cost brokerage services to give users access to US equity markets, and will “act as a precursor to the launch of Douugh’s banking app in Australia early next year”, the company said.