Canada-based digital trading technology provider Wealthsimple secured C$114m ($86.8m) on Wednesday from investors including Allianz X, the digital investment arm of insurance group Allianz, at a $1.07bn valuation.
Growth equity firm TCV led the round, which was also backed by venture capital firms Greylock and Meritech Capital as well as VC fund Two Sigma Ventures. TCV general partner David Yuan will get a seat on Wealthsimple’s board of directors.
Wealthsimple has created an automated wealth management software platform that offers users a diversified portfolio of investments intended to balance risk and reward, together with access to its team of investment advisers.
The company also provides commission-free share and crypto trading services in addition to tax-filing software and a savings account. It will use the funding to increase its product range along with the size of the team, while looking to expand its market presence.
Allianz X had previously led a $74.6m round for Wealthsimple in May 2019 that was also backed by Power Financial, the financial services provider that had invested $38m in the company in February 2017, $37m in May and $51m in early 2018.
Power Financial’s first investment in the company came in 2015 when it supplied $24m in funding. Impression Ventures had joined angel investors Joe Canavan, Roger Martin, David Ossip and Dan Debow to provide it with $1.7m in 2013.
Wealthsimple’s co-founder and chief executive, Mike Katchen, said: “There is still so much room to grow, and to have investors of this calibre join us is an incredible vote of confidence in both our mission and our ability to deliver on it.”
