New Delhi: Qapita, a Singapore-based fintech firm that provides ESOP and CapTable Management SaaS solutions in India and Southeast Asia, has raised a USD 5 million Pre-Series A round led by MassMutual Ventures. The company, which operates out of Hyderabad, received investments from venture capital firm Endiya Partners and reputed India-based angel investors including Anjali Bansal (Founder of Avaana Capital), Sujeet Kumar (CoFounder of Udaan) and CEO of an India-based decacorn.
The Pre-Series A fundraise follows closely on the heels of its Seed Round led by Vulcan Capital and East Ventures in September 2020. Apart from Vulcan Capital and East Ventures, most existing angel investors including Koh Boon Hwee, Atin Kukreja, Alto Partners, Mission Holdings, Northstar Group Partners (Patrick Walujo) & K3 ventures also participated in this round.
Qapita helps private companies and startups record and manage capitalisation tables (cap tables) and employee stock ownership plans (ESOPs). The firm also aims to digitise issuance of equity awards and shares. Its software platform is designed to enable capitalization table management, employee stock ownership plan (ESOP) management, and digital ESOP issuance with the aim of eventually enabling digital share issuance for companies across the region.
Over the last year, Qapita has built its team to include senior talent from industries like investment banking, venture capital and ESOP management. The team has grown from six people in September 2020 to over 30 people today, spread across various geographies in this region.
This fresh funding will be used to add engineering talent, accelerate product development and build clientele in India, Indonesia and Singapore. Lakshman Gupta, COO and Co-Founder of Qapita said, “Over the last six months, more than a hundred startups have agreed to onboard with Qapita and manage their equity ownership on our software platform. New features will help us address pain points of not only startups and investors but that of all stakeholders in the ecosystem. We are looking to partner with various service providers including law, accounting and company secretarial firms and we will grow together by collaborating.”
Speaking on this investment, Anvesh Ramineni, Managing Director of MassMutual Ventures said, “Globally, we are witnessing trends that indicate a convergence between public and private markets. Qapita is enabling this in the region through their solution – from cap table and stakeholder management to digital share issuances and liquidity solutions. We believe the team has the right combination of experience, understanding of regional markets and product expertise to deliver on their vision. We are very excited to partner with Qapita and look forward to working with them as they build a category leading company in Asia.”
Ravi Ravulaparthi, CEO and Co-Founder of Qapita, said, “We are grateful to have like-minded investor partners and this is a strong endorsement of the team we are building beyond just the Founders. Wealth creation happens substantially through equity in the start-up ecosystem. Through our Cap table, ESOP and Liquidity solutions, we want to enable Founders not only to offer equity to more stakeholders (including employees) but also provide faster liquidity. This will enable them to accelerate the flywheel of reinvestment into the rapidly growing startup ecosystem in India, and Southeast Asia.”
“India and the entire South-East Asia region already have a very vibrant startup ecosystem that is going to grow exponentially in the next few years with large capital inflows. Qapita with a stellar experienced team, customer traction, and marquee relevant investors has real potential to be a leader in the Cap Table, ESOP, and Liquidity Management space. Endiya is a launchpad for great product startups and our association with Qapita is the beginning of an inspiring journey which we are stoked about”, said Sateesh Andra, Managing Director, Endiya Partners.
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