OneStack Secures Rs 12.5 Crore in Funding for Fintech Expansion
OneStack, a prominent fintech infrastructure startup, has successfully secured Rs 12.5 crore from new investor Shepherd’s Hill, along with support from existing investors Pentathlon Ventures and AVNM Ventures. This Mumbai-based startup had previously raised $2 million in a Series A round in March 2025, which was spearheaded by Pentathlon Ventures, with contributions from Yatra Angel Network and established investors 100Unicorns and Venture Catalysts. With this latest funding round, OneStack has raised an impressive total of Rs 45 crore across four funding rounds.
Funding Utilisation Strategies
The funds will be allocated to broaden its reach within cooperative banks and non-banking financial companies (NBFCs), in addition to advancing product development focused on payments, core banking, and regulatory compliance, as stated by the company in a press release.
About OneStack
Founded by Amit Kapoor in 2019, OneStack delivers technological infrastructure that empowers smaller financial institutions to provide digital banking services without the need to develop their own systems. Its comprehensive platform incorporates mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management, and the OneCBS core banking system.
Enhanced Capabilities for Cooperative Banks
The company indicated that cooperative banks utilising its platform can now operate as UPI issuers and acquirers directly with the National Payments Corporation of India (NPCI), using their own bank handles. This advancement allows them to issue UPI IDs to customers, onboard merchants, and process payments through their own systems, all while maintaining customer relationships, transaction data, and merchant discount rate (MDR) revenue.
Future Plans and Compliance Tools
OneStack plans to expand its offerings to NBFCs, providing essential tools for customer verification and fraud reporting. Additionally, its compliance suite will feature integration with the Indian Cyber Crime Coordination Centre (I4C). The company also serves as an Aadhaar OVSE technology service provider, integrates eKYC Setu, and holds RuPay debit card issuance certification along with SU3J licenses from credit bureaus.
Strategic Partnerships
Recently, OneStack formed a partnership with a major private sector bank that sponsors over 250 cooperative banks. This collaboration will facilitate the provision of UPI issuing, merchant acquiring, and a broader banking platform across the entire network.
Market Potential
OneStack boasts that it serves more than 200 banks throughout India, including state cooperative banks, district central cooperative banks (DCCBs), and non-scheduled urban cooperative banks (NSUCBs). The cooperative banking sector in India presents a substantial opportunity for technology providers, as noted in NABARD’s 2024-25 annual report, which lists 34 state cooperative banks and 351 DCCBs, collectively operating nearly 15,900 branches as of March 2025.
Competition in the Fintech Space
Numerous startups are emerging to deliver technological infrastructure to cooperative banks and other financial entities to facilitate their digital transformation. These include core banking software, mobile banking solutions, payment systems, and compliance tools. Another competitor, RUGR Fintech, secured $5 million in pre-Series A funding in September 2025, led by Vikasa India EIF I Fund, to bolster its digital payments and rural banking infrastructure. Banking infrastructure startup TransBnk also recently raised $25 million in a Series B round in August 2025, spearheaded by Bessemer Venture Partners, aimed at scaling its transaction banking, escrow management, and payment infrastructure.