Summary:
Charles Schwab leads a $26.5 million Series B investment in Singapore's Qapita, a move to challenge Carta in the U.S. equity management space
New Schwab Private Issuer Equity Services platform enables U.S. startups to manage cap tables, employee stock plans, and IPO preparations
Qapita serves 2,700 companies, with 70% in India and 20% in Southeast Asia, and counts half of India's unicorns as customers
Partnership allows Charles Schwab to compete with Carta, Pulley, and Shareworks for private company equity management services
Funding will support expansion of Qapita's platform, including a new fund admin product and enhanced automation features
Qapita's Strategic Move into the U.S. Market
Qapita, a Singapore-based equity management platform, has secured $26.5 million in a Series B funding round led by Charles Schwab. This partnership marks a significant step in expanding Qapita's services to U.S. startups, positioning it as a direct competitor to established players like Carta.
New Platform: Schwab Private Issuer Equity Services
As part of this collaboration, Charles Schwab has launched Schwab Private Issuer Equity Services, powered by Qapita. This platform enables U.S. startups to:
- Manage cap tables efficiently
- Administer employee stock plans
- Prepare for public listings with integrated tools
Qapita's Founding and Growth
Founded in 2019 by Ravi Ravulaparthi (CEO), Lakshman Gupta (COO), and Vamsee Mohan (CTO), Qapita was born out of Ravulaparthi's observation that many companies still relied on spreadsheets for equity management. The platform initially focused on cap table management but quickly evolved to include employee equity management tools based on early customer feedback.
Market Presence and Customer Base
Qapita currently serves approximately 2,700 companies, with a strong foothold in:
- India: 70% of its user base, including about half of the country's unicorns
- Southeast Asia: 20% of users, spanning Singapore and Indonesia
- U.S.: Early market testing with a few users, set to expand significantly through this partnership
About 1,400 firms pay for at least one of Qapita's services, while early-stage companies enjoy free access to the platform.
Competitive Landscape and U.S. Expansion
Ravulaparthi highlighted the U.S. market's vast potential, noting that existing options are insufficient for its size. This deal allows Charles Schwab, which already handles stock plans for major public companies, to compete with Carta, Pulley, and Morgan Stanley's Shareworks in the private company space.
Platform Features and Integration
The new platform will offer:
- Automated cap table processes
- Custom reports and dashboards
- Seamless integration with other financial systems
- Connection to Schwab's wealth management network, facilitating IPO preparations and stock plan management for employees
Funding and Future Plans
In addition to Charles Schwab, the Series B round saw participation from existing investors Citi and MassMutual Ventures. To date, Qapita has raised over $80 million and employs 300 people. The latest funding will support the launch of a fund admin product across multiple markets, further enhancing its platform capabilities.
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