Raiz Investment Australia Limited Business Model Analysis

Running head: THINK BIG
THINK BIG
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1THINK BIG
Executive summary
The given report is based on the financial technology company named Raiz Investment Australia
Limited (RZI) based in Australia. The company offers unique services to the customers and a
wide range of portfolios to choose from. The report deconstructs their business model, examines
the key success factors and analyses the different downside risks that the company is exposed to.
Certain changes to the business model of the company along with recommendations on the same
have also been provided.

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Table of Contents
I. Introduction..............................................................................................................................3
II. Business model.....................................................................................................................3
Building blocks............................................................................................................................4
Interrelationships.........................................................................................................................9
Critical success factors..............................................................................................................10
Downside risks...........................................................................................................................10
Business model changes............................................................................................................11
III. Conclusion..........................................................................................................................11
IV. Recommendations...............................................................................................................12
VI. Appendices..............................................................................................................................15
Appendix 1.................................................................................................................................15
Appendix 2: Financial statements..............................................................................................17
Profit and Loss Statement..........................................................................................................17
Cash Flow Statement.................................................................................................................17
Financial Position Statement.....................................................................................................18

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I. Introduction
Any business functioning in the external environment needs to have a definite business
model which will assist it in ensuring that all the operations of the firm are carried on effectively.
The company which has been chosen for the given assessment is the Raiz Investment Australia
Limited. The Raiz Investment Australia Limited Company is an Australian based award winning
financial technology company which permits the different customers to make a micro investment
of the round upped value of an item which has been purchased (RZI Share Price, 2018). The
company currently has 160000 active users with approximately $200 million funds under its
management. The company is registered under the Australian Stock Exchange with the name
ASX: RZI. The CEO of the company is George Lucas and has been managing the company quite
well. Moreover, the company made a profit of around 1.04 million dollars as of 2017. The
company fucntions through a mobile application which is available on Android as well as iOS
platforms (Raiz App., 2018). The company works automatically and any purchases made online
will be rounded up and the extra roundup shall be invested into the spare change up the exchange
traded funds. The given report will be deconstructing the business model of the firm followed by
the critical success factors and probable down risks.
II. Business model
The company charges a subscription of 5$ to its customers and allows them to invest the
extra money from their rounded up purchase into the exchange trade markets. The company has
an official website through which it deals with the different customers and the profile of the
owners are also largely available on the website (Kiel, 2014).