Toronto-based Wealthsimple raised $610M from Greylock and Meritech

Wealthsimple is a renowned fintech company based in Canada with gigantic brand value, which they have gained through their work and reputation in the market. They raised about $750 million CAD or $610 million USD and stand at a valuation of $5 billion CAD or $4 billion USD. Greylock and Meritech led the funding round, including the funds from Sagard, Inovia and Redpoint, TCV, Two Sigma Ventures along with individual investors like Michael J. Fox, Ryan Reynolds and Drake, or basically all of the most famous Canadians.

This funding round has made the valuation of Wealthsimple multiply triple times the valuation it had in the previous round, which was $114 million CAD or $93 million USD, offering a valuation of $1.5 billion CAD or $1.22 billion USD. Wealthsimple is a company based in Toronto, that has led the realm of democratizing the financial products for their customers, including crypto-asset sales, peer-to-peer money transfer, and stock trading. Such a raise can be a huge positive step toward a profitable outcome for the business of Wealthsimple.

The company claims to have seen noticeable growth during the pandemic, which might be an important reason behind the huge raise in its valuation between the previous funding and this one. The commission-free platform of retail investments provided by Wealthsimple has expanded rapidly in the past 14 months according to the company. They also mentioned how the crypto trading platform launched by themselves last August has also undergone strong uptake under the recent increase of customers interested in cryptocurrency assets.

In the later part of the last year, Wealthsimple launched a P2P app for money transfer or Wealthsimple cash and made it available to every Canadian in March. The app shares a resemblance with Venmo or Square’s Cash as per the app features, but neither of these offers was available to Canadians. The app developed by Wealthsimple is free and unique, it can be distinguished from its platforms for stock trading and crypto. This made the significant rise of demands in the market possible and has experienced valid progress to date.

The funding has hence been a true blessing for Wealthsimple to expand its business and attain better productivity. This capital can help the company in growing its position in the market, develop and enlarge its team, as well as create its product suite. They also have offers regarding investment products or the robo-adviser tools which were originally created, automated savings and tax filing tools as well. The company has demonstrated how clear its appetite is, to prove its ability to elaborate its offers and encompass a lot more of the financial lives of customers when they are committed to fresh resources that can help them do so.

According to the company, they have over 1.5 million users with an assets value of $10 billion under management, as per the last publicly available study.