CPP Investments joins existing investors in backing firm’s plan for growth
Wealthsimple has secured big name backing to fuel its growth as CPP Investments joins existing investors in an equity funding round of up to $750 million, including a $550 million primary offering and a secondary offering of up to $200 million.
The new money will boost the firm’s valuation to $10 billion, but perhaps as important as the figures is the confidence that the investors have shown in the Toronto headquartered firm’s innovative vision for the future of Canadian financial services.
"This raise reflects deep confidence from new and returning investors in our mission and our role as a defining Canadian company," said Michael Katchen, CEO and co-founder of Wealthsimple. "We were intentional in choosing partners committed to the long-term future of Wealthsimple. These are well-respected, global leaders with a proven track record scaling category leaders, and who believe in our vision for the future of financial services."
Along with the Canada Pension Plan Investment Board, the new funding has been raised from Dragoneer Investment Group and GIC, and existing investors Power Corporation of Canada, IGM Financial Inc., ICONIQ, Greylock and Meritech.
"Wealthsimple has built a strong foundation as a trusted financial platform in Canada, combining innovation with disciplined growth," said Afsaneh Lebel, managing director and head of funds at CPP Investments. "Alongside our partner Dragoneer, we've seen the company's innovative approach to making financial products more accessible to Canadians, consistent with our strategy to back technology-driven businesses that deliver lasting value for CPP contributors and beneficiaries."
The firm says it was profitable in 2024 and remains so in 2025, with assets doubling from $50 million last year to $100 million recently. The new investment will help accelerate its ambitious growth plans which includes investing, spending, and credit products. It will also support strategic expansion of its platform.
Earlier this month, Wealthsimple added new investing tools to its platform and shared the results of its recent retail investor survey.
IGM Financial’s president and CEO James O’Sullivan says that Wealthsimple has rapidly established itself as the leading innovator in Canada’s financial services industry. IGM’s new investment in the firm increases its stake by 46% or around $680 million, to 25.5% or approximately $2.26 billion.
“They recently crossed $100 billion in assets under administration, which is a remarkable achievement by any standard,” added O’Sullivan. “Today's announcement is the latest example of its impressive momentum over the last few years and ongoing ability to generate enhanced value for our shareholders."
