Charles Schwab just threw down the gauntlet in the cap table management space. The financial giant led a $26.5 million Series B funding round for Singapore-based Qapita while launching a new platform that directly challenges Carta's dominance in helping US startups manage equity. The move signals Wall Street's growing appetite for the private company services market.
Charles Schwab is making its biggest bet yet on the startup economy. The investment giant led a $26.5 million Series B round for Qapita, Singapore's equity management platform, while simultaneously launching a joint service that puts it in direct competition with cap table king Carta.
The timing couldn't be more strategic. As Carta faces scrutiny over its secondary market practices and competitors like Pulley gain traction, Schwab sees an opening to grab market share in the lucrative private company services space. The new "Schwab Private Issuer Equity Services" platform, powered by Qapita's technology, will help US startups manage cap tables, administer stock plans, and prepare for public listings.
"Of course, the U.S. is a very large market," Qapita CEO Ravi Ravulaparthi told TechCrunch. "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."
The numbers back up that confidence. Qapita already serves 2,700 companies across Southeast Asia and India, with roughly half of India's unicorns among its customer base. About 1,400 of those companies pay for services, generating revenue from what started as a free cap table management tool.
Founded in 2019 by former banker Ravi Ravulaparthi alongside Lakshman Gupta and Vamsee Mohan, Qapita emerged from a simple observation - too many companies still managed equity on spreadsheets. The platform has since evolved into a comprehensive equity management suite that handles everything from employee stock plans to secondary share sales.
Carta's brief foray into the Indian market ended in 2023 when it exited, leaving Qapita room to consolidate its position. Now, with Schwab's backing and distribution muscle, the Singapore startup is preparing to return the favor by challenging on its home turf.
