Demand for ESOP management tools spurs revenue at Qapita

IN FOCUS

In today’s newsletter, we look at:

• How demand for ESOP tools drove Qapita’s revenue in FY 2023
• Razer Fintech’s rebranding to Fiuu
• The alleged financial misconduct of Investree’s ex-CEO and co-founder

Welcome to The Top Up! Delivered every fortnight via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. Get it in your email inbox by registering here.

Hi there,

Several friends of mine have been waiting it out for months at their firms, which are seemingly on the brink of an IPO.

For many, the potential payoff of their employee stock ownership plans (ESOPs) far outweighs the present burnout or lure of a more exciting role. A report by Saison Capital in 2021 found that one in five companies dissolves all options, including vested ones, upon employee departure. As a result, many employees grit their teeth and stay on, especially when an IPO seems on the horizon.

The same report found that on the whole, ESOPs at Southeast Asian companies tend to veer in favor of the companies, rather than the talent they’re meant to incentivize.

It’s clear that companies in the region are a long way off from their US peers in implementing such options – if at all. Still, it seems like an increasing number are demanding equity management solutions, and the growing revenue of East Ventures-backed Qapita reflects that.

In this week’s Big Story, my colleague Budi dives into Qapita’s financial results in its 15-month financial year ended March 2023. While the firm had grown its revenue to US$8.9 million in just 15 months, total costs had also increased 10x compared to 2021.

On the topic of financials, Fiuu – previously Razer Fintech – has said that it is operating at a “profitable level” and that revenues have “doubled over the past four years.”

I discuss the significance of Razer Fintech’s rebranding and what that bodes for its B2B payments business in this week’s Hot Take.

— Melissa

THE BIG STORY

Qapita’s revenue jumps to $8.9m in FYE March 2023, but losses widen

Image credit: Timmy Loen

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI