Canada-based online wealth manager WealthSimple has secured C$50m ($37m) in series B funding from financial services firm Power Financial, bringing the latter’s total investment in WealthSimple to C$100m.
Founded in 2014, WealthSimple operates an automated investment platform that collects information on an investor’s financial situation and risk tolerance to generate a personalised, diversified portfolio with low management fees and no minimum investment size.
The capital will support WealthSimple’s continued growth in its home country and the US, as well as the expansion of its business-to-business service, Wealthsimple for Advisors.
The platform currently has $750m under management, spread across more than 30,000 clients – up from $570m and some 20,000 users in February this year when the company disclosed it had raised a total of $50m from Power Financial.
Power Financial had supplied C$30m in funding for the company in 2015, after WealthSimple had collected an initial C$1.9m from Impression Ventures and assorted angel investors the previous year.
Michael Katchen, chief executive of WealthSimple, said: “We structured the first deal with Power to be in a long-term partnership where they would put in more money if we need additional capital.”