Online investing app Wealthsimple has reportedly joined the ever-growing list of FinTech unicorns, after the close of a $114m investment.
The retail investor hit a $1.4bn valuation following an investment from TCV, Greylock Partners, Meritech Capital, Allianz X and Two Sigma Ventures, according to a report from Times Colonist. Collectively, the investors have acquired a 7.5% stake in the FinTech.
Funds from the round will be used to bolster Wealthsimple market position, build additional products and expand its Canadian team.
Wealthsimple, which launched in 2014, is a retail investment platform that aims to make investing more simple and accessible through low fees and easy-to-use digital tools.
Its services include managed portfolio service, Wealthsimple Invest and a zero-commission trading app Wealthsimple Trade.
Wealthsimple chief executive Mike Katchen told The Canadian Press, “There’s still so much room to grow, and to have investors of this calibre join us is an incredible vote of confidence in both our mission and our ability to deliver on it.”]
As part of the deal, TCV general partner David Yuan will join the Wealthsimple board of directors.
Prior to the investment, Power Corp. of Canada, IGM Financial Inc. and Great-West Lifeco held a 70.1% stake in the WealthTech, of which, 26.2% was held by Power Corp, the article claims. However, following the deal the three companies now hold 61.7% of the FinTech shares and Power Corp now owns 23.1%, it said.
Wealthsimple former funding round was a CAD $100m last year from backers including Allianz X and Power Corp.
Despite the troubles caused by Covid19, this year has seen a long list of FinTechs become unicorns. Earlier this week, India-based Razorpay became a unicorn after the close of a $100m funding round.
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