Wealthsimple raises $75 million and says it’s closer on path toward an IPO.
Wealthsimple CEO Michael Katchen tells CNBC he sees the funding as a “great step” in bringing the firm closer to a stock market debut.
Katchen says Wealthsimple is looking to “ultimately replace banks” in becoming the “primary financial partner” for clients.
Wealthsimple Trade has been offering free stock trades since March. There are many catches – the firm offers only non-registered accounts right now, U.S.-dollar accounts
The acquisition of SimpleTax’s software adds to Wealthsimple’s suite of financial products, which includes an ETF-focused investment service, a two-per-cent-interest savings account and a zero-commission trading platform. The company says it has over one million clients in Canada. Wealthsimple also offers its services in the U.S. and U.K.