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Wealthsimple raises C$750m at C$10bn valuation

Canada's Wealthsimple has raised C$750 million at a post-money valuation of C$10 billion in a funding round led Dragoneer Investment Group and GIC.

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Wealthsimple raises C$750m at C$10bn  valuation

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The round, which includes both a C$550 million primary offering and a secondary offering of up to C$200 million, was joined by Canada Pension Plan Investment Board, Power Corporation of Canada, IGM Financial, Iconiq, Greylock and Meritech.

Founded in 2014, Toronto-based Wealthsimple began life as an online investment manager and trading app but has been busy expanding over the years, setting its sights on Canada's big five banks.

In addition to managed and self-directed investing platforms, commission-free trading and crypto trading, it has also taken on everyday banking, with features such as bank draft delivery and automatic paycheque allocation, and a chequing account with no monthly, foreign exchange or ATM withdrawal fees.

This year, the company launched a waitlist for its first credit card, surpassing 300,000 Canadians in the first six months.

Having hit profitability last year, the platform now claims three million customers and C$100 billion in assets under administration.

The new funding will be used accelerate its roadmap across investing, spending and credit, and support strategic opportunities to expand its platform - in August it acquired investment research platform Fey.

Christian Jensen, partner, Dragoneer Investment Group, says: "The Wealthsimple team has built an expansive financial platform that millions of Canadians trust. They're not just participating in Canada's financial services industry; they're redefining it."

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