Canada’s Wealthsimple Raises Funds at $9.8 Billion Valuation

Wealthsimple Financial Corp. was valued at C$13.8 billion ($9.8 billion) after the Toronto-based fintech agreed to raise as much as C$425 million in an equity round, it said in a Tuesday statement.

That means the company is worth 38% more than a year ago, cementing its position as one of Canada’s most valuable startups.

The capital raise announced Tuesday was led by Singapore’s sovereign wealth fund GIC. Montreal-based Power Corporation of Canada invested C$68 million, and its subsidiary IGM Financial Inc. invested a further C$96 million. Power Corp.’s direct equity interest in Wealthsimple is valued at C$2.1 billion including the new money being invested, that company said in a statement.

Iconiq, Canada Pension Plan Investment Board and Inovia also participated in the capital injection, which included both a C$300 million primary offering as well as a secondary offering of up to C$125 million which allowed employees to realize gains.

Wealthsimple plans to use the proceeds to expand its product offering, including business, spending and checking, as well as trading and investing services.

“This is really about stepping on the gas,” Co-Founder and Chief Executive Officer Michael Katchen said in an interview.

“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.”

The Canadian startup now has C$169.2 billion in assets under administration, after Katchen blew past a previous goal to amass C$100 billion by 2028. The next goal is C$1 trillion, he told Bloomberg last week.

“Since co-leading last year’s round, our conviction in Wealthsimple’s ability to become Canada’s leading financial services platform has only grown,” said Vinay Yarlagadda, managing director of GIC’s Technology Investment Group, in a statement.

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