German insurer and asset manager Allianz has led a $100 million investment round in Wealthsimple.
The online investing service and commission-free trading app which manages over $4.5 billion for more than 150,000 clients in Canada, Britain and the United States, will use the cash to boost growth across those markets.
Allianz invested in Wealthsimple through its digital arm, Allianz X, alongside long-standing Wealthsimple backer Power Financial. In advance of today’s announcement, Power Financial had invested $165 million in Wealthsimple.
“As a digitally-enabled financial services provider with a strong customer focus, Wealthsimple can complement Allianz’s business in a number of areas,” Nazim Cetin, CEO of Allianz X, said.
“This investment underlines our commitment to truly digital companies and is an excellent addition to our portfolio.”
As part of the deal a member of Allianz X will join the Wealthsimple board.
“Bringing Allianz to Canada with this investment is a landmark transaction in Canadian Fintech,” Wealthsimple Chairman Paul Desmarais III said.
“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.”