Singapore and India-based equity management firm Qapita has completed the acquisition of Pune-based tax and financial services firm ESOP Direct in an all-cash transaction. Qapita is backed by venture capital investors and financial institutions such as Vulcan Capital, East Ventures, MassMutual Ventures, Endiya Partners, Citibank, NYCA Capital and leading angel investors from India and Southeast Asia.
The combined entity will manage over $12 billion worth of ESOPs with about 13,000 employee owners on ESOP Direct’s platform, the company said in a statement. Qapita will serve over 1,200 companies in India and Southeast Asia and double its headcount to 200 following the acquisition.
Qapita aims to cement its presence in start-up hubs in India – Bengaluru, Mumbai, Hyderabad, New Delhi, Pune and Chennai besides its presence in Singapore and Jakarta. Qapita expects the value of private securities in the region to exceed $1 trillion to $1.5 trillion with the presence of 200-250 unicorns within the next few years.
Commenting on the acquisition, Qapita CEO and co-founder Ravi Ravulaparthi said, “The incredible team at ESOP Direct pioneered equity compensation serving leading companies in this region. This acquisition is an important step in executing our vision of creating one unified platform for all equity matters in our attempt to build rails for the private markets.”
Co-founder and CEO of ESOP Direct Harshu Ghate said, “This step is a logical progression of our current business model and in line with the global trends in this domain. Our deep domain expertise and thought leadership will now be leveraged beyond the Indian market. We will continue our efforts to structure cutting-edge solutions to ensure the success of our clients’ employee share plans”