Wealthsimple grabs $100m in new funding round from Allianz
Digital wealth giant Wealthsimple has raised a CA$100m (£58.8m) investment round, led by the investment unit of insurance firm and asset manager Allianz.
The Canadian fintech, which operates in the UK and US alongside its home country, manages an online investing service and a commission-free stock trading app, with over $4.5bn of assets under management.
Read more: Nutmeg targets 'seven figure sum' in crowdfunding round
Wealthsimple said it will use the funding to develop its existing services while also exploring new product offerings.
“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 Mike Katchen, co-founder and chief executive of 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.”
Read more: Wealth management apps could 'eclipse' traditional channels
The startup has now raised CA$266m across three rounds, with existing investors including the Power Financial group of companies and Impression Ventures.
Allianz has previously invested in the likes of US insurtech stalwart Lemonade and Indonesian ride-hailing startup Go-jek through its Allianz X arm.
“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, chief executive 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."