Canada-based digital investment platform developer Wealthsimple received C$750m ($610m) in funding yesterday from investors including Allianz X, a subsidiary of insurance group Allianz, at a valuation of almost $4.1bn.
Meritech Capital and Greylock Partners co-led the round, which also featured DST Global, Sagard, Iconiq Capital, Dragoneer, TCV, iNovia Capital, Base 10 Partners, Redpoint Ventures, Steadfast Capital, Alkeon Capital Management, TSV, Plus Capital and multiple individuals.
Wealthsimple offers an online service that allows users to invest in low-cost index funds while using technology to automate practices like rebalancing or tax loss harvesting. It has also added features to the platform such as high interest savings and commission-free trading.
The valuation represents a large jump from the $1.07bn valuation at which the company raised $86.8m in an October 2020 round led by TCV that included Allianz X, Greylock, Meritech Capital and Two Sigma Ventures.
The October round followed more than $225m in funding for Wealthsimple since it was founded in 2014, with Allianz X leading a $74.6m round in mid-2019 that included financial services provider and existing investor Power Financial. Its earlier backers include Impression Ventures.
Mike Katchen, co-founder and chief executive of Wealthsimple, said: “I would like us to look forward. I think the status quo in Canada has been put on notice.
“We will use this investment to give Canadians more, and more powerful, financial products; more efficient ways to grow and manage their money; and make sure that the door to financial freedom is open to every single one of us.”
