Wealthsimple hits $5 billion (US$4 billion) valuation on funding from Ryan Reynolds, Drake
A Wealthsimple program is shown on a cell phone. (Wealthsimple / THE CANADIAN PRESS)
Wealthsimple said on Monday it has raised $750 million (US$610.40 million) in its latest funding round, which more than doubled the Canadian fintech company's valuation to $5 billion.
The latest funding round included participation from celebrities Drake, Michael Fox and Ryan Reynolds, according to the company.
The Toronto-based company that has helped make stock trading, peer-to-peer money transfers and tax filing easily accessible, said it will use the amount raised to further expand its market position, product suite and team.
The latest funding round, led by venture capital firms Meritech and Greylock, also includes investments from iNovia, Sagard, TSV and Redpoint.
The funding consists of $250 million primary fundraising by Wealthsimple and a $500 million secondary offering by holding company Power Corp of Canada, its largest shareholder.
Wealthsimple said it has seen rapid growth in the past 14 months as Canadians took an interest in stock trading during the COVID-19 pandemic.
Earlier this year, the company said it plans to grow revenue by adding premium features for its clients.