Charles Schwab supports Singapore’s Qapita, a competitor to Carta

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

As part of the deal, Charles Schwab introduced a new platform called Schwab Private Equity Services – powered by Qapita – which allows startups to manage their CAP tables, manage equity plans, and prepare for public listings.

Founded in 2019 by former banker Ravi Ravulaparthy (CEO) along with Lakshman Gupta (COO) and Vamsi Mohan (CTO) (pictured above, left to right), Qapita helps private companies track ownership, manage equity, and facilitate secondary equity sales. The startup serves private companies across Southeast Asia and the US, and also provides its platform to listed companies in India to manage shares after the announcement.

Qapita started as a platform for managing CAP tables after Ravulaparthi, during his previous 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, which was initially released in beta. Contoritor Carta later entered the Indian market but exited in 2023, giving Qapita space to consolidate its position.

The startup says currently about 2,700 companies are using its platform. About 70% are found in India and 20% in Southeast Asia, including Singapore and Indonesia. Qapita counts about half of India’s unicorns among its clients, Ravulabarthy said in an interview.

While Qapita provides free access to its platform to early-stage companies, about half of its users—nearly 1,400 companies—pay for at least one of its services.

In addition to India and Southeast Asia, the startup has a few users in the United States as part of early market testing. However, this partnership will significantly expand its presence in the United States

“Of course, the US is a very big market. There are some options in the private market space in the US, but they are very few in a market of this 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 that allows it to compete for startups with Carta, Pulley, or Morgan Stanley’s Warkeworks.

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 connect Schwab’s wealth management network, enabling companies and their employees to manage equity 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 improve its platform by launching the Fund Administrator product across multiple markets.

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