IGM Financial and Power Corporation among backers as Wealthsimple targets product expansion and tech growth
Wealthsimple has closed a new financing round of up to $425 million, with its two biggest backers - IGM Financial Inc. and Power Corporation of Canada - committing a combined $164 million to fuel the Toronto-based company's next growth phase.
The announcement signals deepening conviction from the Power Corporation group, which controls the majority of Wealthsimple through a network of subsidiaries, that the fintech has solidified its position as a genuine challenger to Canada's established financial services industry.
A $425 million vote of confidence
The financing consists of a $300 million primary offering and a secondary offering of up to $125 million. The round is led by Singapore's sovereign wealth fund GIC, with additional participation from ICONIQ, CPP Investments, and Inovia alongside the two Canadian anchor investors.
IGM Financial, the Winnipeg-based wealth and asset management company, is investing $96 million as part of the deal. As a result, IGM will increase the book value of its Wealthsimple stake by $341 million - a 13 per cent uplift - from $2.59 billion to $2.93 billion.
Following the close of the transaction, which is expected in the fourth quarter of 2026, IGM will hold a 25.1 per cent interest valued at approximately $3.03 billion, or $13.20 per IGM share. IGM will remain Wealthsimple's single largest shareholder.
Power Corporation, the Montréal-based international holding company, is separately committing $68 million through its subsidiary Power Financial Corporation, through which it subscribes for Class F Preferred Shares.
Power Corporation's direct equity interest in Wealthsimple is now valued at $2.0 billion based on the offering price - an increase of 13 per cent compared to the second quarter of 2026 - rising to $2.1 billion after the additional investment is factored in.
What the investment says about Wealthsimple's trajectory
Wealthsimple, headquartered in Toronto and founded in 2014, serves more than four million Canadians across chequing and spending, managed investing, self-directed trading, and tax filing.
As of September 30, 2026, the company held approximately $169 billion in assets under administration - a figure that has nearly doubled over the past year, according to data released earlier this year when Wealthsimple reported record growth figures driven by its best-ever RRSP season.
The new capital is earmarked for product expansion and continued development of Wealthsimple's technology infrastructure, areas where the platform has already pushed into territory long occupied by the big banks, offering lower fees and a digital-first client experience across the wealth spectrum.
Damon Murchison, President and CEO of IGM Financial and IG Wealth Management, framed the additional commitment in terms of long-term shareholder value.
"Wealthsimple continues to reshape how Canadians engage with financial services, and its progress over the past year underscores the strength of its platform and the opportunity ahead," he said. "Our additional investment reflects our confidence in the business, its leadership and its long-term growth potential. As Wealthsimple's single largest shareholder, we are proud to continue supporting its ambition while creating meaningful value for IGM shareholders."
Strategic holdings as a long-term growth engine
For IGM Financial, the Wealthsimple stake is one piece of a broader portfolio of strategic investments that also includes Rockefeller Capital Management in the United States, China Asset Management Co., Ltd., and Northleaf Capital Partners.
IGM has been channelling restructuring savings into AI capabilities across IG Wealth Management and Mackenzie Investments, while simultaneously growing the book value of its fintech holdings - a dual strategy that positions the firm for diversified earnings beyond its traditional distribution model.
Power Corporation's direct Wealthsimple stake is held through Power Financial and Portag3 Ventures Limited Partnership, and the broader Power group's combined interest - including IGM Financial's portion - was valued at approximately $4.7 billion as of the second quarter of 2026, according to Power Corporation's Q2 2026 financial results.
Wealthsimple's growth has moved well beyond its origins as a robo-advisor. In Q2 2026, the platform recorded approximately $17 billion in net deposits - its largest quarter ever - and for the first time, more chequing accounts were opened than investment accounts, a signal that the platform is embedding itself more deeply in everyday Canadian financial life.
