Wealthsimple raises $100M from Allianz X and Power Financial group of companies

Wealthsimple will use new strategic capital to evolve its product suite and accelerate growth

Mississauga, ON (May 23, 2019) – The company behind Canada’s leading online investing service and first commission-free trading app has raised a $100 million investment round. Allianz X, the digital investment unit of the Germany-based Allianz Group, a leading global insurer and asset manager, led the round.

“We’re thrilled to welcome Allianz as an investor and partner in Wealthsimple, which is a major endorsement of our company and growth trajectory,” said Michael Katchen, co-founder and CEO, Wealthsimple. “We’re now backed by companies that represent trillions of assets globally. We believe their deep expertise, plus the product, the brand and the team we’ve built, are a winning combination to further our mission to make great financial products and advice accessible to everyone.”

Since launching in September 2014, Wealthsimple has engaged consumers with a product and brand that stands out in the financial services landscape. Through its managed portfolio service, Wealthsimple Invest, and its $0-commission trading app, Wealthsimple Trade, the company makes investing accessible to everyone with low fees and easy-to-use digital tools. The brand has been recognized for its innovative approach to design and storytelling — it’s been recognized as a Most Innovative Company by Fast Company magazine, and has won awards from the Director’s Guild of America, the Webby Awards, the Society of Publication Designers, and Elevate.

Wealthsimple will use the new capital to deepen its customer relationships by further developing its existing services and exploring new product offerings while evolving its B2B platform for advisors and institutions, and accelerating growth across its three markets.

“As a digitally-enabled financial services provider with a strong customer focus, Wealthsimple can complement Allianz’s business in a number of areas,” said Nazim Cetin, CEO of Allianz X. “This investment underlines our commitment to truly digital companies and is an excellent addition to our portfolio. We look forward to collaborating with Wealthsimple in our digital wealth management ecosystem.”

Allianz X invests in innovative digital companies around the world. Its portfolio includes U.S. insurtech Lemonade, micro-insurer BIMA, and ride-hailing companies GO-JEK and SafeBoda. A member of Allianz X will be joining the Wealthsimple board.

“Bringing Allianz into this investment is a landmark transaction in Canadian Fintech. The partnership between Wealthsimple, Portag3 Ventures and the Power group since the founding of the company in 2014 is unique,” said Paul Desmarais III, Chairman of Wealthsimple. “We believe the coming together of large incumbent companies that understand how to build global asset managers, with innovative, digital-first companies, is the future of financial services.”

Wealthsimple manages more than $4.5 billion for more than 150,000 clients in Canada, the U.S. and the UK.

Ardea Partners acted as Wealthsimple’s exclusive financial advisor for this investment.

About Wealthsimple

Wealthsimple is a financial company on a mission to help everyone achieve financial freedom by providing products and advice that are accessible and affordable. Using cutting-edge technology, Wealthsimple takes financial services that are often confusing, opaque and expensive and makes them simple, transparent, and low-cost. Wealthsimple provides services in the U.S., the U.K., and Canada. The company was founded by a team of financial experts and technology entrepreneurs, and is headquartered in Toronto, Canada. To learn more, visit www.wealthsimple.com.

About Allianz X

Allianz X is the digital investment unit of the Allianz Group, one of the world’s leading insurers and asset managers, and part of the Group’s Renewal Agenda. Allianz X invests in digital growth companies that are part of our ecosystems related to insurance: Mobility, Connected Property, Connected Health, Wealth Management & Retirement, and Data Intelligence & Cybersecurity. Allianz X provides an interface between portfolio companies and the digital ecosystem within Allianz, and drives innovation across Allianz’s operating entities and global lines of business.

SOURCE: Wealthsimple

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