The Canadian fintech netted a CAD$750 million ($559.2 million) funding round at a staggering CAD$5 billion ($3.7 billion) valuation led by venture capital firms Meritech and Greylock, per Finextra. Wealthsimple—which has operations in the UK as well—also passed the 2 million user milestone in its domestic Canadian market.
Wealthsimple has tripled its valuation since its October 2020 raise following a reprioritization of its domestic market.
While Wealthsimple pursues becoming a one-stop shop for Canadians’ financial service needs, it should continue expanding its investing options. Wealthsimple plans to drive growth and become its users’ primary financial institution by rolling out additional financial services like insurance and mortgage products. But Wealthsimple should also fuel user growth within its existing investment offering—to do so, it could follow the lead of fellow digital wealth manager Wealthfront and add more self-directed investing options. Wealthsimple could let users build their portfolios from a selection of ETFs. This will help Wealthsimple further tap into surging interest in self-directed investing and platforms like Robinhood.