Charles Schwab just fired a shot across Carta's bow. The financial giant led a $26.5 million Series B round in Singapore-based Qapita and launched a joint platform targeting U.S. startups with cap table management and equity services. It's a bold move that could reshape how private companies handle their equity as Schwab leverages its public company expertise to chase the booming startup market.
Charles Schwab just made its biggest bet yet on the private markets. The brokerage giant led a $26.5 million Series B round in Singapore-based Qapita and immediately launched a joint platform called Schwab Private Issuer Equity Services - a direct challenge to cap table management leader Carta.
The partnership signals Schwab's aggressive push beyond its traditional public company stock plan services into the red-hot startup equity market. While Schwab already handles equity compensation for major public corporations, this deal gives it a foothold with private companies and puts it in direct competition with Carta, Pulley, and Morgan Stanley's Shareworks.
"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," Qapita CEO Ravi Ravulaparthi told TechCrunch. That understated assessment hints at the massive opportunity both companies see in disrupting Carta's dominance.
Qapita brings serious credentials to the fight. Founded in 2019 by former banker Ravulaparthi alongside COO Lakshman Gupta and CTO Vamsee Mohan, the startup has quietly built one of Asia's largest equity management platforms. The company now serves 2,700 companies, with roughly 70% based in India and 20% across Southeast Asia including Singapore and Indonesia.
The numbers tell a compelling growth story. About half of Qapita's users - roughly 1,400 firms - pay for at least one service, and the platform counts around half of India's unicorns as customers. That's particularly impressive given that competitor Carta entered the Indian market but retreated in 2023, essentially handing Qapita room to consolidate its position.
Ravulaparthi's origin story for Qapita sounds familiar to anyone who's dealt with startup equity management. During his banking career, he noticed companies still managing complex cap tables through spreadsheets - a pain point that became Qapita's founding thesis when it launched in January 2021. The platform initially focused on cap table management but expanded based on customer feedback to include employee stock plan administration.
The Schwab partnership transforms Qapita from a regional player into a potential U.S. market disruptor. The joint platform will provide equity management tools to automate cap table processes, generate reports and dashboards, and integrate with other financial systems. More importantly, it connects directly to Schwab's wealth management network, creating a seamless path for companies and employees from private equity management through IPO preparation.
