Wealthsimple has raised a $65 million investment from the Power Financial group of companies (TSX: PWF), bringing Power Financial’s total investment in Wealthsimple to $165 million.
Wealthsimple manages approximately $1.9 billion for over 65,000 clients in Canada, the United States, and the United Kingdom. More than 80 per cent of people who use digital investing in Canada use Wealthsimple.
The company will use the new capital to evolve its investing product, explore new financial product offerings, accelerate growth across its three markets, and further develop its B2B platform.
“Wealthsimple had an incredible 2017. We expanded to our first international markets, and tripled the number of clients who invest with us,” said Michael Katchen, CEO and co-founder, Wealthsimple. “We’re looking forward to building on this momentum, making an even better product for even more clients in the months and years ahead.”
Since launching in September 2014, Wealthsimple has been heralded as an innovator in financial services – and Canada as a whole. It makes investing accessible to everyone, with no minimum account size, low fees, and powerful, easy-to-use digital tools. The brand has been recognized for its innovative approach to design and technology – as a Strategy Magazine Brand of the Year, with back-to-back Webby Awards for its website, a Directors Guild of America award for its Super Bowl ad, and a Magazine about money that is actually fun and interesting to read. It’s an approach that has resonated with a new generation of investors: 80% of Wealthsimple’s clients are under 45, and 40% are first-time investors.
“We at Power Financial are proud to be Wealthsimple’s greatest champion as it becomes a global leader in marrying unique digital technology with great content and service,” said Paul Desmarais III, Chairman of Wealthsimple and Senior Vice-President at Power Financial Corporation. “Wealthsimple is delivering the benefits of financial advice to more and more people to help them create a better future.”
photo credit: Wealthsimle