rewrite this title Charles Schwab backs Singapore’s Qapita, a Carta challenger | TechCrunch

Qapita, a Singapore-based equity management platform, has raised $26.5 million in a Series B round led by Charles Schwab.

As part of the deal, Charles Schwab has introduced a new platform called Schwab Private Issuer Equity Services — powered by Qapita — which let’s U.S. startups manage their cap tables, administer stock plans, and prepare for public listings.

Founded in 2019 by former banker Ravi Ravulaparthi (CEO) with Lakshman Gupta (COO) and Vamsee Mohan (CTO) (pictured above, from left to right), Qapita helps private companies track ownership, manage employee equity, and facilitate secondary share sales. The startup serves private companies across Southeast Asia and the U.S., and also provides its platform for listed firms in India to manage equity after going public.

Qapita began as a platform to manage cap tables after Ravulaparthi, during his earlier banking career, noticed 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 an equity management tool for employee stock plans, initially released in beta. Competitor Carta later entered the Indian market but exited in 2023, giving Qapita room to strengthen its position.

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

While Qapita offers free access to its platform for early-stage companies, about half of its users — roughly 1,400 firms — 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 U.S. as part of its early market testing. However, this partnership will significantly expand its presence in the U.S.

“Of course, the U.S. is a very large market. There are a few options in the private market space in the U.S., but they are too few for a market of that size,” Ravulaparthi said of competitors.

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

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

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

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