JAKARTA (TheInsiderStories) – Qapita, a Singapore-based service provider has raised a US$5 million Pre-Series A round led by MassMutual Ventures. India-based venture capital firm Endiya Partners and reputed India-based angel investors including Anjali Bansal (founder of Avaana Capital), Sujeet Kumar (co-founder of Udaan) and CEO of an India-based decacorn also invested in this round.
The pre-Series A fundraise follows closely on the heels of its seed round led by Vulcan Capital and Indonesia-based East Ventures in September 2020. Most existing angel investors including Koh Boon Hwee, Atin Kukreja, Alto Partners, Mission Holdings, Northstar Group Partners and K3 ventures also participated in this round.
Qapita was founded in September 2019 Ravi Ravulaparthi (CEO), Lakshman Gupta (COO), and Vamsee Mohan (CTO). They identified an opportunity to use systems and software to aid equity and ESOP management in private capital markets across the region.
Last year, the startup has built its team to include senior talent from industries like investment banking, venture capital and ESOP management. The fresh funding will be used to add engineering talent, accelerate product development and build clientele in India, Indonesia and Singapore.
“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,” said Gupta in a written statement released on Tuesday (04/20).
Speaking on this investment, Anvesh Ramineni, managing director of MassMutual Ventures scommented, “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.”
Willson Cuaca, co-founder and managing partner of East Ventures will join the Board following this Pre-Series A investment. He said, “Equity management SaaS solutions will provide the much needed digital equity stack for startups in Indonesia and the wider Southeast Asian region. We think the Qapita team is well placed to solve this problem at scale.”
Technology startups in the region have earned funding up to $8.2 billion in 2020, fell by 3.5 percent compared to a year ago amounted to $8.5 billion. Nearly 50 percent of the funds went to unicorn pockets, such as Malaysia’ Grab Holdings, GoJek, Bukalapak, and Traveloka. More than $100 million deals account for 57 percent of the total investment while the deals between $50 – 100 million set a record value of $1.1 billion, a 26 percent increased from 2019.
Despite the effects of the pandemic, Southeast Asia experienced the smallest decline in startup investment values compared to other developing countries, such as India, which fell 31 percent, and Africa, which fell 38 percent.
Last year, Indonesian startups controlled 70 percent of total funding in the region. Together with Singapore contributed 64 percent of the total agreements. The amount of investment in Indonesia is driven by supper-apps GoJek, supported by Bukalapak, Waresix, Kopi Kenangan, and LinkAja.
Southeast Asia is home to nine independent startups with five subsidiaries that have a valuation of over $1 billion. Regionally, SEA Group, which is the parent of Shopee, has touched a market capitalization of around $50 billion. The Singaporean company, JustCo, officially joined the unicorn list in Southeast Asia at the end of last year.
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