Toronto Based Wealthsimple 610m Meritech
Toronto Based Wealthsimple 610m Meritech: Wealthsimple is a Canadian fintech giant that raised a new round of CAD 750 million (~$610 million) at a post-money valuation of CAD 5 billion (~$4 billion). What is the fund announced by Wealthsimple?
CAD 114 million (roughly $93 million) funding carried a post-money valuation of CAD 1.5 billion ($~1.22 billion USD) last October. The Wealthsimple company has been a leader in financial products for consumers, stock trading, crypto asset sales, and peer-to-peer money transfers.
Toronto Based Wealthsimple 610m
The Toronto-based Wealthsimple wealth management platform operating in Canada, the UK, and the US, has landed a $610 million (CAD 750 million) round of funding.
The investment, which marks one of the most significant technology investments in Canada to date, is seven times the size of its previous fundraise – which closed in October at just $87 million.
What is Wealthsimple?
Wealthsimple is a fintech that started in 2014 and has expanded its offering – most drastically this year.
- It has 1.5 million customers with access to a savings account, tax-filing software, and a cryptocurrency-trading feature.
- The start-up claims it helped more than one million Canadians filed their taxes last year. It follows its acquisition of the tax preparation app, SimpleTax, back in September 2019.
- Wealth simple’s CEO, Mike Katchen, told BetaKit last year that “responsible credit” products such as mortgages and insurance offerings are on the fintech’s roadmap.
- Wealthsimple also soft-launched its peer-to-peer (P2P) money transfer app, Wealthsimple Cash, last year.
- But the start-up’s no-commission, Wealthsimple Trade service, has seen real growth this year.
Growth of Toronto Based Wealthsimple 610m Meritech
Wealthsimple achieved a boom during a pandemic, and by the end of 2019, customers increased more than doubled from 100,000 to 250,000. Its assets jump from CAD 4.3 billion ($3.3 billion) to CAD 6.3 billion ($4.8 billion).
In the first six months of 2020, trading customers doubled to more than half a million. Assets shot more than CAD 8.4 billion ($6.4 billion).
As per CEO Katchen, the fintech captured Canada’s second-largest number of new trading clients in the first half of 2020, behind only Toronto-Dominion Bank.
Wealthsimple allows users to securely buy, sell and hold cryptocurrency assets using a simple mobile app. Wealthsimple Cash, a peer-to-peer money transfers app, in early 2021.
It also offers automated investing, saving, spending, and tax filing. The company uses the new capital to expand its market position, build its product suite, and grow its team.
Wealthsimple is hovering at the leading edge of that transformation in Canada. The company has assembled an incredible team that is passionate about the mission of helping Canadians achieve financial freedom. More than two million Canadians use Wealthsimple to grow their money, file their taxes, pay their friends, and make their financial lives better. This investment will fuel our growth so we can reach millions more and ensure that everyone has access to the simplest, most powerful financial products and services, no matter who they are or where they are in their financial lives.
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