Charles Schwab Backs Singapore’s Qapita in Competition with Carta

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

In conjunction with this investment, Charles Schwab introduced the Schwab Private Issuer Equity Services platform, leveraging Qapita’s technology to help U.S. startups manage their cap tables, handle stock plans, and prepare for public offerings.

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

Ravulaparthi created Qapita as a cap table management solution after noticing many companies still relied on spreadsheets in his banking career. Launched in January 2021, the startup broadened its offerings by developing an equity management tool for employee stock plans based on initial user feedback, which was first made available in beta. While competitor Carta entered the Indian market, it exited in 2023, allowing Qapita to strengthen its market foothold.

According to Qapita, the platform currently supports around 2,700 companies, with 70% based in India and 20% in Southeast Asia, including Singapore and Indonesia. Ravulaparthi remarked in an interview that nearly half of India’s unicorns are part of Qapita’s customer base.

Although Qapita provides its platform free to early-stage companies, approximately 50% of its users—around 1,400 companies—subscribe to at least one of its paid services, as noted by Ravulaparthi in a discussion with TechCrunch.

In addition to its growth in India and Southeast Asia, Qapita has begun catering to a smaller user base in the U.S., with this partnership significantly boosting its presence in the American market.

“The U.S. represents a vast market. While there are a few offerings in the private market sector in the U.S., they are quite limited compared to the market’s potential,” Ravulaparthi commented regarding competitors.

Charles Schwab currently manages stock plans for large public firms. This collaboration allows it to penetrate the private sector, enabling competition with startups such as Carta, Pulley, and Morgan Stanley’s Shareworks.

The platform will feature automated equity management tools for cap table processes, report generation, and dashboards, along with integration capabilities with other financial systems. It will also link to Schwab’s wealth management ecosystem, providing companies and their employees with the necessary tools for stock plan management and IPO readiness.

Qapita’s Series B funding round also included support from existing investors, Citi and MassMutual Ventures. This backing will help the startup enhance its platform, including the rollout of a fund administration product across various markets.

To date, Qapita has raised over $80 million in total funding and employs a workforce of 300 individuals.