Revenue at fintech Raiz Invest might be up, but operating cash flows took a hit in the last quarter as the declining share market took its toll.

Revenue for the December quarter bounced 31.5 per cent to $1.7 million.

But cash flows from operating activities — a useful measure of core business growth — stayed in the red at $240,000, which when compared with the previous quarter’s run of $1.4m wasn’t so bad.

Further, cash receipts slid by 8 per cent to $1.8m.

Raiz Invest (ASX:RZI) is the company behind the investing app formerly known as Acorns. It rebranded and listed in June 2018.

The Raiz app lets users invest in simple investment structures such as exchange traded funds (ETFs), but with the added quirk of allowing them to round off small amounts from daily spending and invest that too.

Shares in Raiz were unchanged at 50c following this morning’s announcement but since listing, the company has had a tough run. The price quickly fell by around half from an initial listing price of $1.80, and are now down 72 per cent from their debut.

Raiz shares since listing June 2018.

Are customer numbers in trouble?

Customer signups climbed to above 600,000, but growth in active accounts was flat over the quarter at 175,345.

Active accounts are those with more than $5 in them, and are a core part of the Raiz strategy because each active customer pays a flat $15 annual fee.

“We are encouraged by the number of active customers, which did not fall during one of the most difficult market periods in the last five years for retail investors,” Raiz CEO George Lucas said.

The company also makes money via an account fee on balances above $5,000, along with other maintenance fees.

Market downturn takes its toll

Total funds under management fell to $254m from $262m due to falls in global equity market in the quarter, Raiz said.

Mr Lucas said the business remains “well-funded” with $9.4m in cash.

It is also committed to a south-east Asian expansion strategy via joint venture. Mr Lucas said Raiz has received a financial services license to operate in Indonesia.

“This gives us access to a country with more than 260 million people, a growing middle class and increasing wealth,” Mr Lucas said.