Canada-based financial services company Wealthsimple has signed an equity round of up to USD 538 million, reaching a post-money valuation of approximately USD 7.17 billion.
Including both a USD 394 million primary offering and a secondary offering of up to nearly USD 143 million, the round is co-led by Dragoneer Investment Group and GIC. The agreement underlines the trust of investors in Wealthsimple’s position as a provider of financial services and its capabilities for the Canadian market. In addition to the two companies, other investors who participated in the round were new ones, namely Canada Pension Plan Investment Board (CPP Investments), and existing ones, such as Power Corporation of Canada, IGM Financial Inc., ICONIQ, Greylock, and Meritech.
Wealthsimple’s development strategy
Since the start of its operations in 2014, Wealthsimple has been focusing its efforts on improving and further optimising the Canadian financial landscape and enabling individuals to build wealth more effectively. With its self-directed investing platforms, the company has supported a new generation of investors, as well as delivered one of the first solutions to the market, including commission-free trading, regulated crypto trading, and 24/5 trading. Additionally, when it comes to banking, Wealthsimple has been offering capabilities like bank draft delivery and automatic paycheque allocation, as well as a chequing account with no monthly, foreign exchange, or ATM withdrawal fees, aiming to augment everyday banking for Canadians.
Wealthsimple’s equity round follows a growth period for the company and is set to support it in strengthening its position in the market. This capital injection will allow it to accelerate its strategy across investing, spending, and credit, assist opportunities for expanding its platform, and scale the value it provides to Canadians.
Talking about this milestone, representatives from Wealthsimple emphasised that the raise reflects the confidence that new and returning investors have in the company’s commitment and role in the Canadian financial ecosystem. With this capital secured, Wealthsimple plans to further advance its operations and provide its customers with the solutions that meet their needs, demands, and standards.
