Wealthsimple raises $302 million, now valued at $9.8 billion

Wealthsimple, a Canadian money app, has raised $302 million. The round values the company at $9.8 billion, or $13.8 billion in Canadian dollars. The company announced it on Tuesday, Oct. 27. It says the money will help it expand its spending, checking, trading and investment offerings.

What changed

Bloomberg News reported that the deal makes Wealthsimple one of Canada's most valuable startups. CEO Michael Katchen told the outlet, "This is really about stepping on the gas." He said the company has brought many new products to market to help clients "leave the banks."

Signs of growth

• Record account transfers in the first quarter of this year.
• In the second quarter, new checking accounts beat new investment accounts for the first time.
• More than 50 new products launched in the past year.
• $169.2 billion CAD in assets under administration, meaning money held for clients.

The new products include commission-free options trading and futures trading. They also include IPO Access, which lets Canadians invest in select initial public offerings (a company's first sale of shares to the public) at the offering price.

Why it matters

The checking trend is the notable part. People are opening everyday bank-style accounts at Wealthsimple, not just investing there. Katchen says the goal is for every Canadian to live their entire financial life on the app. If you bank or invest in Canada, that means a growing rival to the big banks for your checking, trading and savings.

In May, Wealthsimple also launched a pilot with Visa Canada using stablecoins, which are digital tokens built to move money faster. The company says it is the first Canadian financial institution to do this with Visa.

What is not known yet

The announcement does not say how the $302 million will be split among products. It does not name new products or give launch dates. Katchen's quote says the investors "chose to increase their commitment," but the material here does not list them. Katchen did say the next goal is $1 trillion CAD in assets, after passing an earlier goal of $100 billion CAD before 2028.