Qapita, the Singapore-headquartered equity management platform, has announced raising $26.5 million in its Series B funding round anchored by US-based The Charles Schwab Corporation.
The announcement confirms DealStreetAsia’s report in August, which stated that the company issued 208,585 shares, priced at $127.05 apiece, to the Charles Schwab Corporation ($25 million) and existing investors Citicorp North America ($1 million) and MassMutual Ventures ($500,000).
Qapita said proceeds will support its push into the US and the launch of its fund administration product in multiple markets.
As part of the deal, Qapita and Charles Schwab will collaborate on “Schwab Private Issuer Equity Services powered by Qapita,” a platform for US private companies to manage cap tables and stock plans and to streamline transitions to public listings, the company said.
“To enter into the US with both a significant Series B investment from Charles Schwab and a strategic product collaboration… we think we can add immense value to the US start-up ecosystem,” founder and CEO Ravi Ravulaparthi said.
Founded in 2019 by Ravi Ravulaparthi, Lakshman Gupta, and Vamsee Mohan, Qapita provides software solutions for capitalisation tables and employee stock ownership plans (ESOPs), as well as a marketplace for secondaries and buybacks.
In July, Qapita issued new shares worth $8.5 million to existing shareholder Sirsasana Pte Ltd, according to ACRA filings. Sirsasana was allocated 102,610 preference shares at a price of $82.8 apiece, raising its total paid-up capital in Qapita to $10.5 million, boosting its ownership in the company to approximately 9.42%.
In 2022, the company acquired India-based ESOP Direct in a full cash transaction. Back then, Qapita said the acquisition aimed to help the firm expand its customer base to over 1,000 listed and unlisted clients across India and Southeast Asia.
Qapita and its subsidiaries posted losses of $3.44 million on revenues of $6.14 million during the financial year ended March 31, 2024, regulatory filings showed.
The company’s revenue was primarily driven by trading unlisted securities, which generated $1.58 million in 2024. Income from equity management also added $4.57 million to Qapita’s coffers.
