The company to use the proceeds to further improve its market position, build out its product suite and grow its team

Wealthsimple-Wealthsimple launches its first spending account

Wealthsimple offers various digital financial products to its customers, including the Wealthsimple Cash money transfers app. (Credit: CNW Group/Wealthsimple)

Canadian fintech company Wealthsimple has raised CAD750m ($609.94m) in a new investment round to take its valuation to CAD5bn ($4bn).

The funding round was led by tech investors Meritech and Greylock.

Meritech general partner Max Motschwiller said: “We invest in companies with the potential to revolutionize industries and become enduring market leaders.

“Wealthsimple has been able to capture a generation of financial consumers in Canada with financial products that are markedly different than anything offered by the incumbents — simpler, more human, and built with the kind of technology that delivers an experience consumers want.”

Other firms that invested in the Canadian fintech company during the funding round include DST Global, Sagard, TCV, iNovia, Allianz X, Iconiq, Dragoneer, Redpoint, Base 10, Alkeon, STEADFAST, TSV and Plus Capital.

Wealthsimple also attracted investments from Canadian actors Michael J. Fox and Ryan Reynolds, rapper Aubrey Graham (Drake), and athletes Dwight Powell, Kelly Olynyk, and Patrick Marleau.

In October last year, the company raised CAD114m ($93m) in a funding round, which valued it at CAD1.5bn ($1.22bn). Prior to this, the company secured CAD100m ($81.3m) in March 2019.

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

Founded in 2014, Wealthsimple is said to make investing more accessible by charging low fees and providing easy-to-use digital tools. These include Wealthsimple Invest, the company’s managed portfolio service, and Wealthsimple Trade, its $0-commission trading app.

The company also caters to its customers with automated investing, saving and spending and tax filing.

In August last year, the company introduced Wealthsimple Crypto, which enables users to securely purchase, sell, and hold cryptocurrency assets through a simple mobile app. Earlier this year, it launched a peer-to-peer money transfers app called Wealthsimple Cash.

Wealthsimple co-founder and CEO Mike Katchen said: “More than two million Canadians use Wealthsimple to grow their money, file their taxes, pay their friends, and make their financial lives better.

“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.”