Online investing service Wealthsimple has raised $100 million from a consortium led by Allianz X, the digital investment unit of Germany-based global insurer and asset manager Allianz Group. Power Financial also contributed to the financing.
Wealthsimple said in a release Wednesday it will use the funding for growth purposes.
“We’re now backed by companies that represent trillions of assets globally,” Mike Katchen, co-founder and CEO of Wealthsimple, said in the release.
“We believe their deep expertise, plus the product, the brand and the team we’ve built, are a winning combination to further our mission to make great financial products and advice accessible for everyone.”
Wealthsimple manages over $4.5 billion in assets for more than 150,000 clients in Canada, the U.S. and the U.K. Its services include portfolio management through its Wealthsimple Invest app, commission-free trading through its Wealthsimple Trade app, and financial education through its publishing platform.
Allianz X invests in digital growth companies. Its portfolio includes insurers Lemonade and BIMA, as well as ride-hailing companies GO-JEK and SafeBoda.
As a result of the financing, a member of Allianz X will join Wealthsimple’s board of directors.