Feijoa, the round-up and wealth automation app that helps Kiwis grow their KiwiSaver balances through everyday spending, has completed its first equity raise, securing approximately $925,000 from a group of New Zealand investors.

The raise accelerates Feijoa’s growth as the fintech builds on the traction of its round-up and wealth automation model.

“This raise is confidence in what the thousands of users of Feijoa have already shown us, that removing friction from saving works,” says Mark White-Robinson, Feijoa Co-Founder.

“It gives us the room to build out the features and partnerships that will help to put Feijoa in front of more Kiwis, through the people they already trust with their money.”

Feijoa users are collectively contributing over $3.6 million extra to their KiwiSaver balances every year, projected to grow to over $175 million by the time they retire. The app has processed $1.3 million worth of round-ups and now works alongside KiwiSaver providers including MAS, Koura and Mercer to name a few.

KiwiSaver remains one of New Zealand’s most important long-term savings vehicles, yet the gap widens for Kiwis whose income doesn’t follow a traditional employment pattern. Retirement Commission research released in May found this adds up to a $62,000 balance difference by age 61-65, with non-contributors averaging just $29,201.

“We believe that this reflects a design problem, not a discipline one. Feijoa was built to make saving work in the background, as part of everyday life,” says Mark.

“Until now, the default response to address this gap has been to ask people to change their behaviour, however technology enables us to work with it. Our results prove that when we remove friction and make saving work as part of our existing lifestyle, we can help all Kiwis save for their future.”

With the new funding, Feijoa is developing support for new destinations, as well as rewards and loyalty features that turn everyday spending and customer relationships into additional long-term saving. It’s also building on distribution partnerships with financial advisers, mortgage brokers and other trusted financial channels.

“Advisers and brokers already have trusted relationships with Kiwis. We want to help them access our simple and secure tool that can help their clients build savings habits between the big conversations,“ says Mark.

“Rewards is the next part of the puzzle. We’re close, and it’s going to make every round-up count for even more. Watch this space.”