Qapita raises $5 million in a funding round led by MassMutual Ventures

• Qapita, a software-as-a-service (SaaS) startup has raised $5 million in a funding round led by MassMutual Ventures.
• The funds will be used to recruit tech talent, boost product growth, and expand clientele in India, Indonesia, and Singapore, according to the SaaS startup.
• It helps private firms and startups in India and Southeast Asia record and manage capitalization tables and employee stock ownership plans.

Qapita, a software-as-a-service (SaaS) startup that provides ESOPs and cap table management solutions to private companies, has raised $5 million in a funding round led by MassMutual Ventures.

Endiya Partners, a Hyderabad-based venture capital company, and a group of angel investors, including Udaan co-founder Sujeet Kumar and Avaana Capital founder Anjali Bansal, participated in the Qapita funding round.

Most of the startup's current angel investors, including Koh Boon Hwee, Atin Kukreja, Alto Partners, Mission Holdings, Northstar Group Partners, and K3 Ventures, joined in, as did Vulcan Capital and East Ventures, who led the startup's seed funding in September last year.

Qapita, a company founded by Ravi Ravulaparthi, Lakshman Gupta, and Vamsee Mohan in September 2019, assists private companies and startups in India and Southeast Asia in recording and managing capitalization tables and employee stock ownership plans. The issuing of equity awards and bonds will now be digitized.

"Over a hundred startups have decided to onboard with Qapita and control their equity ownership on our tech platform in the last six months," said co-founder Gupta. "We're looking to work with a variety of service providers, including regulation, accounting, and company secretarial firms," says the company.

The funds will be used to recruit tech talent, boost product growth, and expand clientele in India, Indonesia, and Singapore, according to the SaaS startup. It currently employs over 30 people.

"We are seeing global developments that point to a convergence of public and private economies. Anvesh Ramineni, managing director of MassMutual Ventures, which led the Qapita funding round, said, "Qapita is facilitating this in the area through their solution—from cap table and stakeholder management to digital share issuances and liquidity solutions."

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According to CEO Ravulaparthi, Qapita wants to allow founders to not only sell equity to more stakeholders (including employees) but also provide faster liquidity through its cap table, ESOPs, and liquidity solutions. “This will enable them to accelerate the flywheel of reinvestment into India and Southeast Asia's rapidly growing startup ecosystem,” he said.

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