▼ Summary
– Qapita raised $26.5 million in a Series B round led by Charles Schwab, with participation from existing investors Citi and MassMutual Ventures.
– The startup’s platform helps private companies manage cap tables, employee equity, and secondary share sales, serving firms in Southeast Asia, India, and the U.S.
– Qapita has about 2,700 companies using its platform, with roughly 70% based in India and 20% in Southeast Asia, including half of India’s unicorns.
– The partnership with Charles Schwab introduces a new U.S. platform for startups to manage equity and prepare for public listings, expanding Qapita’s presence in the U.S. market.
– Founded in 2019, Qapita has raised over $80 million total, employs 300 people, and offers both free and paid services to its users.
Singapore’s Qapita, an equity management platform, has successfully secured $26.5 million in a Series B funding round spearheaded by the prominent financial services firm Charles Schwab. This strategic investment marks a significant step for both companies as they aim to reshape how private enterprises handle ownership structures and employee stock plans.
Under the terms of this new alliance, Charles Schwab is rolling out Schwab Private Issuer Equity Services, a platform built on Qapita’s technology. This service is designed to assist U.S. startups with cap table management, stock plan administration, and preparations for going public. By integrating Qapita’s tools, Schwab can now extend its offerings to privately held companies, positioning itself to compete with established players like Carta, Pulley, and Morgan Stanley’s Shareworks.
Launched in 2019 by Ravi Ravulaparthi, Lakshman Gupta, and Vamsee Mohan, Qapita was created to help private businesses track ownership, oversee employee equity, and simplify secondary share transactions. The idea took shape when Ravulaparthi, during his banking career, noticed many firms still depended on manual spreadsheets for equity tracking. After its official debut in January 2021, Qapita quickly evolved by adding an equity management tool for employee stock plans, responding to early user feedback.
Today, Qapita’s platform supports approximately 2,700 companies. About 70% of its user base is located in India, while another 20% operates across Southeast Asia, including Singapore and Indonesia. Impressively, the company serves nearly half of India’s unicorn startups. Although early-stage companies can use the platform for free, roughly 1,400 firms, about half of Qapita’s clients, pay for at least one of its premium services.
While Qapita already has a small number of U.S. users from early testing, this partnership with Charles Schwab is expected to dramatically increase its footprint in the American market. Ravulaparthi noted that the U.S. represents a massive opportunity with relatively few specialized providers serving its private market space.
The newly introduced platform will automate cap table management, generate detailed reports and dashboards, and integrate with other financial systems. It will also connect to Schwab’s wealth management network, helping companies and their employees manage equity plans and get ready for initial public offerings.
In addition to Charles Schwab, Qapita’s Series B round saw continued support from existing investors Citi and MassMutual Ventures. The fresh capital will help the company enhance its product suite, including the launch of a fund administration tool across various international markets. To date, Qapita has raised over $80 million and employs a team of 300 professionals.
(Source: TechCrunch)
