Wealthsimple Secures $750 Million in Latest Equity Round
Wealthsimple, a prominent fintech entity headquartered in Toronto, has successfully garnered up to $750 million CAD in a recent equity financing round, thereby elevating its valuation to an impressive $10 billion CAD.
This funding round comprises $550 million in fresh capital, coupled with a $200 million secondary offering. It is spearheaded by Dragoneer Investment Group and GIC, with investments from notable participants such as the Canada Pension Plan Investment Board (CPP Investments), alongside existing stakeholders including Power Corporation of Canada, IGM Financial, ICONIQ, Greylock, and Meritech.
Renowned for its diverse suite of investment, spending, and tax solutions, Wealthsimple recently disclosed a significant milestone, now managing $100 billion in assets—an impressive doubling from the $50 billion reported just a year prior. Furthermore, the firm anticipates achieving profitability in both 2024 and 2025.
Michael Katchen, CEO and co-founder of Wealthsimple, stated, “This raise signifies robust confidence from both new and returning investors in our mission and our position as a pivotal Canadian enterprise.
We have deliberately selected partners who are committed to the long-term trajectory of Wealthsimple. These are esteemed global leaders with a distinguished history of scaling premier businesses, and they resonate with our vision for the future of financial services.”
The newly acquired funds will be utilized to broaden Wealthsimple’s offerings in investment, credit, and everyday banking products while also exploring new strategic avenues.
Christian Jensen, Partner at Dragoneer Investment Group, remarked, Few companies have accomplished what Wealthsimple has managed in recent years. The Wealthsimple team has established a comprehensive financial platform that is trusted by millions of Canadians.
They are not merely participating in the financial services sector; they are redefining it. Wealthsimple’s rapid product development, intense focus on customer experience, and leadership within the category parallel some of the most resilient global firms, and we are excited to collaborate with them in this forthcoming growth phase.
Since its inception in 2014, Wealthsimple has emerged as one of Canada’s leading digital finance platforms, providing services such as self-directed and managed investing, cryptocurrency trading, and no-fee banking options.
Recently, the company launched a waitlist for its inaugural credit card, amassing over 300,000 interested Canadians. Additionally, it introduced a biannual livestream event, titled Wealthsimple Presents.
In the prior week, Wealthsimple hosted its ‘For Nerds Only’ event, unveiling new investment features, along with the capability to trade and purchase authentic gold and additional offerings.
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