Paul Desmarais III, Chairman of Wealthsimple

Allianz X, the digital investment unit of the Allianz Group, and Canada-based Power Financial Corporation, a financial management and holding company, have announced that they will invest C$100 million in Wealthsimple, a fintech offering an online investing service and commission-free trading app.

Wealthsimple will use the new capital to deepen its customer relationships by developing its existing services and new product offerings, as well as evolving its B2B platform for advisors and institutions.

Since launching in September 2014, Wealthsimple has made investing more accessible through low fees, and easy-to-use digital tools, including its managed portfolio service, Wealthsimple Invest, and its $0-commission trading app, Wealthsimple Trade. Wealthsimple manages over C$4.5 billion for more than 150,000 clients in Canada, the U.S. and the UK.

“Bringing Allianz into this investment round is a landmark transaction in Canadian Fintech. The partnership between Wealthsimple, Portag3 Ventures and the Power group since the founding of the company in 2014 is unique,” said Paul Desmarais III, Chairman of Wealthsimple. “We believe the coming together of large incumbent companies that understand how to build global asset managers with innovative, digital-first companies is the future of financial services.”

Allianz X, the digital investment arm of German insurance and asset management company Allianz Group, invests in innovative digital companies around the world. Its portfolio includes U.S. insurtech Lemonade, micro-insurer BIMA, and ride-hailing companies GO-JEK and SafeBoda.

“As a digitally-enabled financial services provider with a strong customer focus, Wealthsimple can complement Allianz’s business in a number of areas,” said Nazim Cetin, CEO of Allianz X.

by Megha Bhattacharya
Market Analyst at IBS Intelligence
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