In a spherical led by Meritech and Greylock, Canada-based fintech Wealthsimple has secured $610 million (C$750 million) in funding. The funding takes the net brokerage’s complete capital to greater than $1 billion, greater than triples the corporate’s most up-to-date valuation to $four billion, and represents one of many largest financings for a Canadian know-how firm so far.
“Seven years in the past, we launched Wealthsimple with simply 4 folks and a mission that many thought was naive: use know-how and innovation to revolutionize the finance trade so each Canadian may obtain monetary freedom, irrespective of who they’re or how a lot cash they’ve,” Wealthsimple co-founder and CEO Mike Katchen wrote on the corporate’s weblog this morning. “I’m completely happy to say that our mission doesn’t appear fairly so naive anymore.”
Additionally taking part within the spherical have been DST International, Sagard, Iconiq, Dragoneer, TCV, iNovia, Allianz X, Base 10, Redpoint, STEADFAST, Alkeon, TSV, and Plus Capital. A number of Canadian celebrities have been additionally concerned within the funding, together with actors Ryan Reynolds and Michael J. Fox; athletes Kelly Olynyk, Dwight Powell, and Patrick Marleau; and singer Drake.
Since its inception in 2014, Wealthsimple has grown right into a agency with greater than two million customers who get pleasure from commission-free inventory buying and selling, automated investing, in addition to entry to cryptocurrencies and tax companies. This spring, the corporate launched its money app, which permits Canadians to ship and obtain money “in seconds.” Free and requiring no minimal steadiness to make use of, Wealthsimple Money has been likened to Venmo, a well-liked money app within the U.S. The app at the moment has every day spending limits of $5,000 a day and $20,000 a month; Wealthsimple mentioned that that is considerably extra beneficiant than what is offered by the massive banks.
Wealthsimple’s funding information comes because the Toronto, Ontario-based fintech pivots to pursue new alternatives within the Canadian market (the corporate sold its U.S. investment advisory business to Betterment in March). Throughout the investing mini-mania surrounding Robinhood and shares of Gamestop earlier this 12 months, traders in Canada have been weighing in by making Wealthsimple’s buying and selling app the primary app on Canada’s Apple App Retailer and on Google Play. This rankings enhance was accompanied by a 50% acquire in sign-ups and a 2x improve in buying and selling quantity. The surroundings created by the worldwide pandemic, in line with Wealthsimple’s Katchen, performed a major position within the firm’s progress; 18% of the nation’s new brokerage accounts within the first half of 2020 have been opened on Wealthsimple’s platform.
Like a rising variety of fintechs, Wealthsimple additionally plans to increase its choices to incorporate money, checking, insurance coverage, and mortgage merchandise with the purpose of changing into the shopper’s “primary financial institution“. The corporate initially earned its unicorn standing in October, after securing an funding of $93 million (C$114 million). Energy Company of Canada is the corporate’s majority shareholder, with a 43% of the corporate post-financing.