Raiz, the micro-investing platform operated by Permodalan Nasional Bhd in partnership with Raiz Invest Limited, will shut down in Malaysia after four years following a strategic business review. The closure will allow Raiz to focus on its Australian operations, with a structured process in place to handle the wind-down.
9 July 2024 – Permodalan Nasional Bhd’s (PNB) micro-investing and fintech platform, Raiz, will cease operations in Malaysia after four years of activity. This decision follows a strategic review conducted by Raiz Invest Limited, as reported in a filing with the Australian Securities Exchange (ASX) last Friday.
Raiz Malaysia Sdn Bhd, a joint venture between Raiz Invest and PNB, will halt its operations in Malaysia. The venture, managed in collaboration with Jewel Digital Venture Sdn Bhd (JDV) and Raiz Invest Australia Limited, decided to close after evaluating its business prospects.
Raiz Invest mentioned that the strategic review prompted the joint venture partners to agree on the shutdown. The Malaysian entity has secured sufficient capital to cover the closure expenses, with JDV committing an additional RM3 million to ensure a structured 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,” Raiz stated, without specifying a closure timeline.
The termination of Malaysian operations will not affect Raiz’s Australian operations’ profit and loss, with the Malaysian activities being classified as discontinued operations in its financial report.
“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 strong economic performance for shareholders. On behalf of the board, I would like to thank our partner for their role in the JV partnership over the last four years,” said Raiz Managing Director and CEO Brendan Malone.
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