Charles Schwab Backs Singapore’s Qapita, a Rival to Carta

Qapita, a Singapore-based equity management platform, has successfully raised $26.5 million in Series B funding, with Charles Schwab leading the round.

In conjunction with this initiative, Charles Schwab introduced the Schwab Private Issuer Equity Services platform, built using Qapita’s technology, enabling U.S. startups to effectively manage their cap tables, administer stock plans, and prepare for public offerings.

Established in 2019 by former banker Ravi Ravulaparthi (CEO), along with Lakshman Gupta (COO) and Vamsee Mohan (CTO) (shown above, from left to right), Qapita helps private companies track ownership, manage employee equity, and facilitate secondary share transactions. The company serves private entities across Southeast Asia and the United States, while also providing post-IPO equity management services to publicly traded enterprises in India.

Qapita was conceived as a cap table management solution after Ravulaparthi noticed that many firms still relied on spreadsheets during his banking career. Upon its launch in January 2021, the startup enhanced its offerings by adding an equity management tool for employee stock plans based on feedback from initial users, initially available in beta. Competitor Carta ventured into the Indian market but exited in 2023, creating an opportunity for Qapita to strengthen its position.

As reported by Qapita, the platform currently supports around 2,700 companies, with 70% located in India and 20% in Southeast Asia, including Singapore and Indonesia. In an interview, Ravulaparthi mentioned that nearly half of India’s unicorns are among Qapita’s clients.

While Qapita provides its platform free for early-stage companies, approximately 50% of its users—around 1,400 companies—subscribe to at least one of its services, according to insights shared by Ravulaparthi with TechCrunch.

Beyond India and Southeast Asia, Qapita has begun exploring a smaller user base in the U.S., with this partnership set to significantly expand its reach in the American market.

“The U.S. represents an immense market. While there are a few offerings in the private market space in the U.S., they are scarce relative to the market’s vastness,” remarked Ravulaparthi regarding competitors.

Charles Schwab currently manages stock plans for sizable public firms. This partnership, however, allows it to break into the private sector, enabling competition with startups like Carta, Pulley, and Morgan Stanley’s Shareworks.

The platform will feature automated equity management tools for cap table processes, generate reports and dashboards, and integrate with other financial systems. Additionally, it will connect with Schwab’s wealth management ecosystem, giving companies and their employees the tools to manage stock plans and prepare for IPOs.

Qapita’s Series B funding round also saw participation from existing investors, Citi and MassMutual Ventures. This backing will support the startup in enhancing its platform, including launching a fund administration product across various markets.

To date, Qapita has secured over $80 million in total funding and boasts a team of 300 employees.