Wealthsimple, an online brokerage part of the Power Corporation of Canada, raised $610 million in its latest fundraising round that values it at about $4 billion.
The fintech’s big new funding, led by Meritech Capital and Greylock Partners, has more than tripled its $1.2 billion valuation from its last round in October. Other participating investors include rapper Drake, actors Ryan Reynolds and Michael J. Fox, and basketball player Dwight Powell.
The Toronto-based company began as an investment manager and trading app, but went on to rapidly expand its business. It now offers services including commission-free stock trading, crypto trading, automated investing, and peer-to-peer cash transfers.
The brokerage, which counts over 2 million users and holds $8.4 billion in assets under management, is cashing in on the past year’s surge in retail investing that helped boost the popularity of other trading platforms like Robinhood.
Wealthsimple’s latest funding will be used to “expand its market position, build out its product suite, and grow its team.” The company said it comes during its biggest period of growth to date in its seven years in business.
“More than two million Canadians use Wealthsimple to grow their money, file their taxes, pay their friends, and make their financial lives better,” CEO Mike Katchen said in a statement. “This investment will fuel our growth so we can reach millions more and ensure that everyone has access to the simplest, most powerful financial products and services, no matter who they are or where they are in their financial lives.”
Parent firm Power Corp’s Toronto-listed shares closed 1.5% higher on Monday.