Charles Schwab Invests in Qapita, Singapore's Equity Management Platform

Qapita Secures $26.5 Million in Series B Funding

Qapita, an equity management platform headquartered in Singapore, has successfully completed a $26.5 million Series B funding round. The investment was spearheaded by Charles Schwab.

New Platform Launch with Charles Schwab

Following the investment, Charles Schwab has unveiled a new service, Schwab Private Issuer Equity Services. This platform is powered by Qapita and is designed to assist U.S.-based startups with crucial tasks. These include cap table management, stock plan administration, and preparation for initial public offerings (IPOs).

Company Overview and Founding

Established in 2019, Qapita was founded by Ravi Ravulaparthi (CEO), Lakshman Gupta (COO), and Vamsee Mohan (CTO). The company provides solutions for private companies to track ownership details, oversee employee equity, and streamline secondary share sales.

Qapita extends its services to private companies throughout Southeast Asia and the United States. Furthermore, it supports publicly listed companies in India with post-IPO equity management.

Evolution of the Platform

Initially, Qapita focused on cap table management, addressing a common issue observed by Ravulaparthi during his banking career – the widespread reliance on spreadsheets for this purpose.

After its official launch in January 2021, the platform was expanded based on user feedback to incorporate an equity management tool specifically for employee stock plans, initially released in beta. The competitive landscape shifted when Carta, a competitor, exited the Indian market in 2023, creating an opportunity for Qapita to solidify its market position.

Current User Base and Geographic Distribution

Currently, approximately 2,700 companies utilize Qapita’s platform. A significant portion, around 70%, are located in India, while 20% are based in Southeast Asia, including Singapore and Indonesia.

Ravulaparthi stated in a recent interview that Qapita serves approximately half of India’s unicorn companies.

Revenue Model

While Qapita offers free access to its platform for early-stage companies, roughly half of its user base – around 1,400 firms – subscribe to at least one of its paid services, as revealed by Ravulaparthi to TechCrunch.

U.S. Market Expansion

Prior to this partnership, Qapita had a limited user base in the U.S. as part of its initial market testing. However, the collaboration with Charles Schwab is expected to substantially increase its presence within the U.S. market.

Ravulaparthi noted that the U.S. market, while large, has relatively few existing players in the private market space.

Competitive Positioning

Charles Schwab already provides stock plan services for established public companies. This new venture allows Schwab to engage with private companies, positioning it as a competitor to companies like Carta, Pulley, and Morgan Stanley’s Shareworks.

Platform Capabilities

The platform will automate cap table processes, generate comprehensive reports and dashboards, and integrate with existing financial systems. It will also connect with Schwab’s wealth management network, facilitating stock plan management and IPO preparation for companies and their employees.

Additional Investment and Future Plans

Qapita’s Series B round also saw participation from existing investors, including Citi and MassMutual Ventures. The new funding will be used to enhance the platform, with a focus on launching a fund admin product across multiple markets.