The new funding round, announced Tuesday (Oct. 27), values the Canadian company at $9.8 billion, or $13.8 billion CAD, and will help Wealthsimple expand its spending, checking, trading and investment offerings.
“This raise reflects the deep conviction our partners have in Wealthsimple’s mission and in our role as the company defining the future of financial services in Canada,” Michael Katchen, co-founder and CEO of Wealthsimple, said in a news release. “These investors know our business deeply and chose to increase their commitment. With their support, we will keep building and innovating until every Canadian can live their entire financial life on Wealthsimple.”
The release noted that Wealthsimple saw record account transfers during the first quarter of this year, with new checking account openings outpacing new investment accounts for the first time during the second quarter.
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In the last year, the company said it has introduced more than 50 new products across investing, spending, checking and business, including commission-free options trading, futures trading and IPO Access, which helps Canadians invest in select initial public offerings (IPOs) at their offering price.
Wealthsimple also launched a stablecoin settlement partnership with Visa Canada in May, bringing Visa’s stablecoin strategy to Canada for the first time, PYMNTS reported.
Hanna Zaidi, vice president payments strategy and chief compliance officer at Wealthsimple, said at the time that the pilot is in keeping with the company’s effort to create a more dynamic and efficient payments system in Canada.
“Stablecoins represent a fundamental shift in how money moves faster, smarter and without the constraints of legacy systems,” Zaidi said. “Weathsimple is proud to be the first Canadian financial institution to bring this capability to life with Visa.”
A Tuesday report on the new funding by Bloomberg News noted that the financing makes Wealthsimple one of Canada’s most valuable startups.
“This is really about stepping on the gas,” Katchen told the news outlet. “We’ve brought so many new products to market to serve our clients, to help them leave the banks,” he added, that now “their entire financial lives are on Wealthsimple.”
According to the report, the company now has $169.2 billion CAD in assets under administration, after Katchen surpassed an earlier goal to amass $100 billion CAD before 2028. The next goal is $1 trillion CAD, he said.
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