Charles Schwab backs Singapore’s Qapita, a Carta challenger

Qapita, a Singapore-based stock 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 own cap schedules, manage equity plans, and prepare for public listings.

Founded in 2019 by former banker Ravi Ravulaparthy (CEO) along with Lakshman Gupta (COO) and Vamsi Mohan (CTO) (pictured above, left to right), Qapita helps private companies track ownership, manage employee rights, and facilitate secondary share sales. The startup serves private companies across Southeast Asia and the US, and also provides its platform to listed companies in India to manage shares after they go public.

Qapita started as a platform for managing spreadsheets after Ravulaparthi noticed, during his previous banking career, that many companies still relied on spreadsheets. When the startup launched in January 2021, it expanded the platform based on early customer feedback to include a stock management tool for employee stock plans, which was initially released in beta. Rival Carta later entered the Indian market but exited in 2023, giving Qapita space to consolidate its position.

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

While Qapita offers free access to its platform to early-stage companies, about half of its users — roughly 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 early market testing. However, this partnership will significantly expand its presence in the United States

“Of course, the US is a very big market. There are a few options in the private market space in the US, but very few for a market of this size,” Ravulaparthi said of competitors.

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

The platform will provide stock management tools to automate cap table processes, produce reports and dashboards, and link with other financial systems. It will also be connected to Schwab’s wealth management network, enabling companies and their employees to manage equity plans and prepare for initial public offerings.

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

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