Wealthsimple raises $50M to expand services, announces $1B in assets

Michael Kitchen, CEO of Wealthsimple poses for a photograph at his office in Toronto on Thursday, April 27, 2017. (Nathan Denette / THE CANADIAN PRESS)

TORONTO -- Wealthsimple says it has raised $50 million in new funding from Power Financial Corp. (TSX:PWF) to expand its robo-investment adviser services in Canada and the United States.

The company, which has been working to disrupt the traditional investment management business, will also use the cash to grow Wealthsimple for Advisors, its automated platform to assist financial advisers.

Toronto-based Wealthsimple says it now has over $1 billion in assets under administration and more than 30,000 clients.

The company has been geared toward young people who want to set up portfolios online using low-cost exchange-traded funds.

But after expanding its services to the U.S. about four months ago, it says it will also be seeking to capture an older demographic south of the border due to the burden student loan debt there.

The new money brings Power Financial's total investment in Wealthsimple to $100 million.