In a strategic move to enhance its presence in the private market sector, Charles Schwab has led a $26.5 million Series B funding round for Qapita, a Singapore-based equity management platform. This partnership aims to provide U.S. startups with comprehensive tools for managing capitalization tables, administering stock plans, and preparing for public listings.
Qapita’s Evolution and Services
Established in 2019 by former banker Ravi Ravulaparthi (CEO), along with co-founders Lakshman Gupta (COO) and Vamsee Mohan (CTO), Qapita was created to address the inefficiencies in equity management that many companies faced due to reliance on spreadsheets. The platform offers a suite of services, including:
– Cap Table Management: Facilitates accurate tracking of company ownership structures.
– Employee Stock Ownership Plan (ESOP) Administration: Streamlines the management of employee equity programs.
– Secondary Share Sales Facilitation: Provides a marketplace for private companies to manage secondary transactions.
Initially focusing on Southeast Asia, Qapita has expanded its services to the U.S. market, catering to private companies and listed firms in India for post-IPO equity management.
Strategic Partnership with Charles Schwab
The collaboration with Charles Schwab has led to the launch of “Schwab Private Issuer Equity Services,” a platform powered by Qapita. This service is designed to assist U.S. startups in:
– Cap Table Management: Automating the tracking of ownership stakes.
– Stock Plan Administration: Simplifying the issuance and management of employee stock options.
– IPO Preparation: Offering tools and insights to navigate the complexities of going public.
This initiative positions Charles Schwab to compete directly with established players like Carta, Pulley, and Morgan Stanley’s Shareworks in the private market space.
Market Position and Growth
As of October 2025, Qapita serves approximately 2,700 companies, with a significant presence in India (70%) and Southeast Asia, including Singapore and Indonesia (20%). Notably, about half of India’s unicorns utilize Qapita’s platform. The company offers free access to early-stage firms, with around 1,400 companies opting for paid services.
The partnership with Charles Schwab is expected to significantly expand Qapita’s footprint in the U.S., a market with limited options for private company equity management. Ravi Ravulaparthi, Qapita’s CEO, emphasized the potential, stating, “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.”
Funding and Future Plans
The Series B funding round also saw participation from existing investors, including Citi and MassMutual Ventures. With this latest investment, Qapita’s total funding exceeds $80 million. The company plans to use the funds to:
– Enhance Platform Capabilities: Develop and launch a fund administration product across multiple markets.
– Expand U.S. Operations: Leverage the partnership with Charles Schwab to establish a stronger presence in the U.S. private market sector.
Conclusion
The collaboration between Charles Schwab and Qapita marks a significant development in the private market services landscape. By combining Qapita’s innovative equity management solutions with Charles Schwab’s extensive financial services network, this partnership aims to provide U.S. startups with robust tools to manage their equity structures effectively, positioning both companies as formidable competitors to existing market leaders.
