Allianz makes 'landmark' investment in Wealthsimple

Robo-advisor raises $100 million and plans to use capital to evolve its product suite

Allianz makes 'landmark' investment in Wealthsimple

Wealthsimple has raised $100 million after an investment round led by Germany-based Allianz Group, a leading global insurer and asset manager.

The Canadian online investing service, which also launched the first commission-free trading app, said it was thrilled to have Allianz on board as an investor and partner.

Mike Katchen, co-founder and Wealthsimple CEO, said it was a major endorsement for the company and its growth trajectory. “We're now backed by companies that represent trillions of assets globally. 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 to everyone.”

Since launching in September 2014, Wealthsimple has been a high-profile player in the financial services landscape. Through its managed portfolio service, Wealthsimple Invest, and its $0-commission trading app, Wealthsimple Trade, the company aims to make investing accessible to everyone via low fees and easy-to-use digital tools.

Wealthsimple, which manages more than $4.5 billion for more than 150,000 clients in Canada, the US and the UK, will use the new capital to further develop its existing services and explore new product offerings while evolving its B2B platform for advisors and institutions, and accelerating growth across its three markets.

“As a digitally-enabled financial services provider with a strong customer focus, Wealthsimple can complement Allianz's business in a number of areas,” said Nazim Cetin, CEO of Allianz X. “This investment underlines our commitment to truly digital companies and is an excellent addition to our portfolio. We look forward to collaborating with Wealthsimple in our digital wealth management ecosystem."

Allianz X invests in digital companies around the world. Its portfolio includes US insurtech Lemonade, micro-insurer BIMA, and ride-hailing companies GO-JEK and SafeBoda. A member of Allianz X will be joining the Wealthsimple board.

“Bringing Allianz into this investment is a landmark transaction in Canadian Fintech. The partnership between Wealthsimple, Portag3 Ventures and the Power group since the founding of the company in 2014 is unique,” said Paul Desmarais III, chairman of Wealthsimple. "We believe the coming together of large incumbent companies that understand how to build global asset managers, with innovative, digital-first companies, is the future of financial services."