Charles Schwab backs Singapore’s Qapita, a Carta challenger

Qapita, an innovative equity management platform based in Singapore, has successfully secured $26.5 million in a Series B funding round, led by Charles Schwab. This partnership introduces Schwab Private Issuer Equity Services, a new platform powered by Qapita, designed to assist U.S. startups in managing their capitalization tables, administering stock plans, and preparing for public offerings. Founded in 2019 by former banker Ravi Ravulaparthi, alongside co-founders Lakshman Gupta and Vamsee Mohan, Qapita enables private firms to effectively track ownership, manage employee equity, and facilitate secondary share transactions. The platform serves a diverse range of private companies across Southeast Asia and the United States, while also offering services to publicly listed firms in India post-IPO. Initially launched in January 2021, Qapita evolved from a simple cap table management tool to include comprehensive equity management features based on user feedback. This evolution came at a critical time, as competitor Carta exited the Indian market in 2023, allowing Qapita to strengthen its foothold. Currently, the platform boasts approximately 2,700 users, with around 70% located in India and 20% in Southeast Asia, including Singapore and Indonesia. Ravulaparthi highlighted that Qapita serves roughly half of India's unicorn startups. The platform offers free access for early-stage companies, yet about half of its users—around 1,400—opt for paid services. Additionally, while testing the U.S. market, Qapita is poised to expand its reach significantly through this new partnership. Ravulaparthi remarked on the U.S. market's vast potential, noting the limited options available for private companies in terms of equity management. This collaboration with Charles Schwab not only positions Qapita to compete with rivals such as Carta and Morgan Stanley’s Shareworks but also enhances Schwab's existing capabilities in managing stock plans for major public companies. The new platform will streamline cap table processes, generate comprehensive reports and dashboards, and integrate with various financial systems. Furthermore, it will connect with Schwab's wealth management network, facilitating better management of stock plans and IPO preparations for companies and their employees. The Series B funding round also saw contributions from existing investors, Citi and MassMutual Ventures. With this latest injection of capital, Qapita plans to further improve its platform and launch a fund administration product across several markets. To date, the startup has raised over $80 million and employs around 300 staff members.