Charles Schwab supports Singaporean Qapita, Carta challenger

Qapita, a Singapore-based equity management platform, has raised $26.5 million in a Series B round led by Charles Schwab.

As part of the deal, Charles Schwab introduced a new platform called Schwab Private Issuer Equity Services, powered by Qapita, which allows US startups to manage their capitalization tables, administer stock plans and prepare for public listings.

Founded in 2019 by former banker Ravi Ravulaparthi (CEO) along with Lakshman Gupta (COO) and Vamsee Mohan (CTO) (pictured above, left to right), Qapita helps private companies track ownership, manage employee equity, and facilitate secondary stock sales. The startup serves private companies in Southeast Asia and the United States, and also provides its platform to listed companies in India to manage their equity post-IPO.

Qapita started as a cap table management platform after Ravulaparthi, during his earlier banking career, noticed that many businesses still relied on spreadsheets. When it launched in January 2021, the startup expanded the platform based on early customer feedback to include an equity management tool for employee stock plans, initially released in beta. Competitor Carta entered the Indian market later but exited in 2023, giving Qapita the opportunity to strengthen its position.

The startup currently has around 2,700 businesses using its platform, it says. Around 70% are based in India and 20% in Southeast Asia, including Singapore and Indonesia. Qapita counts about half of India’s unicorns among its clients, Ravulaparthi said in an interview.

While Qapita offers free access to its platform to start-ups, about half of its users – around 1,400 companies – pay for at least one of its services, Ravulaparthi told TechCrunch.

In addition to India and Southeast Asia, the startup has a few users in the United States as part of its initial market tests. However, this partnership will significantly expand its presence in the United States.

“Of course, the United States is a very large market. There are some private market options in the United States, but they are too few for a market of this size,” Ravulaparthi said of his competitors.

Charles Schwab already handles stock plans for large public companies. However, this agreement allows it to gain a foothold with private companies allowing it to compete for startups with Carta, Pulley or Morgan Stanley’s Shareworks.

The platform will provide equity management tools to automate capital table processes, produce reports and dashboards, and link to other financial systems. It will also integrate with Schwab’s wealth management network, allowing companies and their employees to manage stock plans and prepare for IPOs.

Qapita’s Series B also included participation from its existing investors, Citi and MassMutual Ventures. This funding will also help the startup improve its platform by launching a fund administration product in multiple markets.

To date, the startup has raised over $80 million in funding and has 300 employees.