Wealthsimple raises CAD $114 mn at valuation of CAD $1.4 bn

By Pavithra R

Wealthsimple, a Canadian online investment management service provider has announced that the company has raised CAD $114 million on a valuation of CAD $1.4 billion.

The funding round was led by TCV, a growth equity investors focused on technology, alongside Meritech, Two Sigma Ventures, Greylock,and existing investor Allianz X. Concurrent with the funding, the company also announced the joining of David Yuan, General Partner at TCV to its Board of Directors.

“Our growth over the past six years shows how ready Canadians, and especially younger Canadians, are for a new model of financial services designed around their needs. But too many people still don’t have access to great financial products or are paying too much for them. There’s still so much room to grow, and to have investors of this caliber join us is an incredible vote of confidence in both our mission and our ability to deliver on it,” said Mike Katchen, co-founder and CEO of Wealthsimple.

Founded in 2014, Wealthsimple has evolved the Canadian financial services industry by bringing smart, simple and affordable financial products and services to market. According to company data, over 1.5 million Canadians use Wealthsimple products. The company is known for its client-centric approach to financial products, which include automated investing, commission-free stock and crypto trading, a savings account, and a tax filing software. The FinTech is planning to use the finance to build out its product suite, grow its team in Canada and expand its market position.

“We have been watching Wealthsimple’s rise in the Canadian market and love the way the company is bringing simplicity, humanity, and delight to personal finance. TCV is focused on businesses that have the potential to transform industries, and we are thrilled to work with Mike and the Wealthsimple team to build a leader in financial services and an important consumer platform,” said David Yuan, General Partner, TCV.

Also, read Wealth Management and Private Banking Systems Report 2020.