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Charles Schwab backs Singapore’s Qapita, a Carta challenger

Charles Schwab has invested $26.5 million in Singapore-based Qapita, an equity management platform, paving the way for a new service, SchwabPrivate Issuer Equity Services. Founded in 2019, Qapita aids startups in managing equity and cap tables. With about 2,700 customers, mainly in India and Southeast Asia, the partnership empowers it to expand further into the U.S. market.

Key points

  • Qapita raised $26.5 million in Series B round led by Charles Schwab.
  • The partnership introduced SchwabPrivate Issuer Equity Services for U.S. startups.
  • Qapita's platform helps manage cap tables, stock plans, and prepares companies for public listings.
  • Founded in 2019 by Ravi Ravulaparthi and others, Qapita witnessed growth due to the limitation of spreadsheets in managing equity.
  • About 2,700 companies use Qapita, with 70% from India and 20% from Southeast Asia.
  • Qapita has about 1,400 paying users, despite offering free access for early-stage companies.
  • The startup has raised over $80 million total funding and employs 300 people.
  • The deal enables Schwab to compete against startups like Carta and Pulley in the private equity management sector.

Why it matters

  • The partnership reflects ongoing globalization trends where fintech startups are expanding into new markets.
  • In 2025, the increasing digital transformation in finance emphasizes the need for robust equity management solutions.
  • The exit of Carta from the Indian market opens opportunities for Qapita to capture a larger share.
  • This move aligns with the finance industry's shift towards automation and efficiency in managing equity for private firms.

Schwab's investment in Qapita not only strengthens their foothold in private equity management but also illustrates the evolution of fintech, enhancing access to critical financial tools for startups, particularly in the expanding U.S. market.