The Douugh Ltd (ASX: DOU) share price opened 7% higher to 18 cents this morning, following an announcement about the company's international expansion into Australia with its acquisition of Goodments Pty Ltd.
In early afternoon trade, the Douugh share price has pulled back slightly to be up by 6.06%.
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What's driving the Douugh share price?
Today, the Douugh share price opened higher after the company announced that its recent Goodments acquisition will re-launch its trading platform in Australia to drive customer and revenue growth in the short-term. The company will then consolidate the Goodments investing app into the Douugh app in partnership with its banking-as-a-service partner, RAB.
Douugh plans to leverage the heightened level of interest in the share market from millennials and Gen-Z and offer the demographic a broader wealth management offering, which will include retirement, single stocks/exchange-traded funds (ETFs) and crypto investing.
Acquiring Goodments to fast-track investing offerings
Founded in 2017, Goodments is an emerging playing in the responsible investing space, building customer-centric products that match sustainability-minded people with investments that align with their environment, social and ethical values.
The company is a regulated Australian Financial Services Licence (AFSL) holder that has strong relationships with financial institutions, brokers and key plays in the investment industry.
The Goodments acquisition has allowed Douugh to accelerate a number of development pathways to drive customer growth and revenues in both the US and Australian markets.
In terms of the US market, the acquisition will help fast-track the launch of the Douugh Wealth offering in the US, creating a launchpad to drive revenues through the introduction of a monthly subscription.
Commentary from management
Douugh's Founder and CEO Andy Taylor commented on the acquisition:
The acquisition of AFSL licensed Goodments and the recent award of our RIA licence in the US allows for the rollout of Wealth Jars. With this feature we can target customers in the investing space who are currently using platforms like Betterment, Acorns and Stash with a holistic solution for their money management, focused on growing automated long-term wealth. This should result in larger average deposit balances being received and ultimately a higher penetration of customers paying in their salaries, which is our north star metric.
He added:
Goodments are currently offering their more than 13,000 customers access to a range of fractionalised US stocks like Tesla, Virgin Galactic, Nike, Square and Apple. As well as high performing ETFs from companies like Ark Invest, Vanguard and Blackrock.
In the current climate, many millennials and Gen Z's are gravitating in record numbers to the sharemarket to help them grow their savings and build wealth.
