Canadian investment platform Wealthsimple hits $5bn valuation

Canadian consumer investment platform Wealthsimple has achieved a C$5 billion valuation after raising a C$750m investment.

The funding round was led by Meritech and Greylock, with DST Global, Sagard, Iconiq, Dragoneer, TCV, iNovia, Allianz X, Base 10, Redpoint, STEADFAST, Alkeon, TSV, and Plus Capital also participating.

Celebrities such as Drake, Michael J. Fox, Ryan Reynolds, Kelly Olynyk, Dwight Powell, and Patrick Marleau also took part in the round.

Wealthsimple, founded in 2014, also offers automated investing, saving and spending, and tax filing.
The investment platform’s latest funding round almost trebles its valuation from its previous round when it raised C$114 million in October 2020 at a valuation of C$1.5 billion.

The company said it will use the new capital to further expand its market position, build out its product suite, and grow its team.

Wealthsimple said it experienced rapid growth during the pandemic as more consumers took an interest in investing.

The pandemic drove a 15 per cent spike in FinTech app use during 2020, with 4.6 billion downloads according to a report by mobile and data analytics platform App Annie and mobile app marketing firm Liftoff.

"The financial services industry is in the midst of a massive transformation, and our continued growth, and the interest from some of the world's leading investors, proves that Wealthsimple is poised at the leading edge of that transformation in Canada," said Mike Katchen, co-founder and chief executive, Wealthsimple. "More than two million Canadians use Wealthsimple to grow their money, file their taxes, pay their friends, and make their financial lives better.”

He added: “This investment will fuel our growth so we can reach millions more and ensure that everyone has access to the simplest, most powerful financial products and services, no matter who they are or where they are in their financial lives."

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