Charles Schwab backs Singapore’s Qapita, a Carta challenger

Qapita, a Singapore-based equity absorption platform, has raised $26.5 cardinal successful a Series B circular led by Charles Schwab.

As portion of the deal, Charles Schwab has introduced a caller level called Schwab Private Issuer Equity Services — powered by Qapita — which let’s U.S. startups negociate their headdress tables, administer banal plans, and hole for nationalist listings.

Founded successful 2019 by erstwhile banker Ravi Ravulaparthi (CEO) with Lakshman Gupta (COO) and Vamsee Mohan (CTO) (pictured above, from near to right), Qapita helps backstage companies way ownership, negociate worker equity, and facilitate secondary stock sales. The startup serves backstage companies crossed Southeast Asia and the U.S., and besides provides its level for listed firms successful India to negociate equity aft going public.

Qapita began arsenic a level to negociate headdress tables aft Ravulaparthi, during his earlier banking career, noticed that galore companies inactive relied connected spreadsheets. When the startup launched successful January 2021, it expanded the level based connected aboriginal lawsuit feedback to see an equity absorption instrumentality for worker banal plans, initially released successful beta. Competitor Carta aboriginal entered the Indian marketplace but exited successful 2023, giving Qapita country to fortify its position.

The startup presently has astir 2,700 companies utilizing its platform, it says. Roughly 70% are based successful India and 20% successful Southeast Asia, including Singapore and Indonesia. Qapita counts astir fractional of India’s unicorns among its customers, Ravulaparthi said successful an interview.

While Qapita offers escaped entree to its level for early-stage companies, astir fractional of its users — astir 1,400 firms — wage for astatine slightest 1 of its services, Ravulaparthi told TechCrunch.

In summation to India and Southeast Asia, the startup has a fewer users successful the U.S. arsenic portion of its aboriginal marketplace testing. However, this concern volition importantly grow its beingness successful the U.S.

“Of course, the U.S. is simply a precise ample market. There are a fewer options successful the backstage marketplace abstraction successful the U.S., but they are excessively fewer for a marketplace of that size,” Ravulaparthi said of competitors.

Charles Schwab already handles banal plans for large nationalist companies. However, this woody gives it a foothold with backstage companies letting it vie for startups with Carta, Pulley, oregon Morgan Stanley’s Shareworks.

The level volition supply equity absorption tools to automate headdress array processes, nutrient reports and dashboards, and nexus with different fiscal systems. It volition besides necktie into Schwab’s wealthiness absorption network, enabling companies and their employees to negociate banal plans and hole for IPOs.

Qapita’s Series B besides included information from its existing investors, Citi and MassMutual Ventures. This backing volition besides assistance the startup heighten its level by launching a money admin merchandise crossed aggregate markets.

To date, the startup has raised much than $80 cardinal successful backing and has a headcount of 300 employees.