Toronto-based Wealthsimple Inc. has raised another $114 million in financing on a valuation of $1.4 billion, making the Canadian start-up a tech “unicorn.”
“Our growth over the past six years shows how ready Canadians, and especially younger Canadians, are for a new model of financial services designed around their needs,” said Mike Katchen, co-founder and CEO of Wealthsimple, in a release.
The financing was led by TCV, a Menlo Park, Calif.-based equity investor, alongside other U.S.-based venture fund companies such as Greylock Partners, Meritech Capital Partners, Two Sigma Ventures Investments, and an existing investor, Munich-based Allianz X. David Yuan, general partner at TCV, will join Wealthsimple’s board of directors.
“There’s still so much room to grow, and to have investors of this caliber join us is an incredible vote of confidence in both our mission and our ability to deliver on it,” Katchen said.
TCV has previously invested in tech giants Facebook, Netflix and Spotify.
In a separate release, Montreal-based Power Corporation of Canada, which owns a majority stake in Wealthsimple, said the new investors would receive an ownership interest of 7.5% in the fintech. As a result, Power now holds a controlling interest of 61.7% of Wealthsimple, down from the 70.1% interest it held prior to the new round of financing.
With the new financing, Wealthsimple is valued at $1.5 billion.