OneStack Secures Fresh Funding to Expand Digital Banking Infrastructure

Indian fintech infrastructure startup OneStack has raised ₹12.5 crore in a funding round led by new investor Shepherd’s Hill, with participation from existing investors Pentathlon Ventures and AVNM Ventures.

The company plans to use the fresh capital to expand its presence among cooperative banks and non-banking financial companies (NBFCs), while strengthening its products across payments, core banking and regulatory compliance.

With this investment, OneStack has raised more than ₹45 crore across four funding rounds. Its earlier investors include 9Unicorns, growX Ventures, Stride Ventures, Samved VC, Silicon Road Ventures and Venture Catalysts.

Cooperative Banks Gain Direct Access to UPI

The funding comes as OneStack enables partner cooperative banks to connect directly with the National Payments Corporation of India (NPCI) as both UPI issuers and acquirers, operating under their own bank handles.

This allows participating banks to issue UPI IDs to customers, onboard merchants and manage payment transactions while retaining greater control over customer relationships and transaction data.

The model also creates an opportunity for cooperative banks to retain eligible payment-related revenue rather than relying entirely on larger intermediary institutions.

OneStack founder and CEO Amit Kapoor said the company's technology brings cooperative banks closer to their customers by placing the banks at the centre of their everyday digital payment activities.

Expanding Its Technology Offering

Founded in 2019 by Amit Kapoor, with Vishal Gupta joining as co-founder in 2023, OneStack provides digital banking infrastructure to smaller financial institutions that may not have the resources to develop and maintain their own technology systems.

Its platform includes:

  • Mobile banking applications

  • UPI issuing and merchant acquiring

  • QR-based payments

  • Merchant SoundBox devices

  • Debit card management

  • OneCBS core banking software

  • Regulatory compliance and fraud-reporting tools

The company is also extending its offerings to NBFCs, including customer verification and fraud-reporting capabilities.

OneStack currently serves more than 200 banks, including state cooperative banks, district central cooperative banks and non-scheduled urban cooperative banks.

Partnerships Support Wider Market Expansion

OneStack has partnered with a large private-sector bank that sponsors more than 250 cooperative banks. This partnership provides a potential route to expand its UPI and digital banking services across a wider network of financial institutions.

The company has also been onboarded as a technology service provider on Sahakar Sarathi, a shared-services platform promoted by NABARD, NCDC and rural cooperative banks.

These partnerships could help OneStack reach more institutions across India's cooperative banking ecosystem.

UPI Monetisation Creates New Opportunities

The development comes amid changes to India's UPI merchant payment framework. The proposed merchant discount rate (MDR) structure for eligible person-to-merchant transactions could create additional revenue opportunities for participating banks.

However, NPCI deferred the planned implementation of the revised charges until after Diwali, with a separate implementation date to be notified.

For cooperative banks operating as both issuers and acquirers, greater participation in payment transactions could offer opportunities to strengthen their digital payment businesses.

Strengthening India's Cooperative Banking Ecosystem

India's cooperative banks play an important role in serving local communities, small businesses and customers in areas where access to large financial institutions may be limited.

However, modernising their technology infrastructure can be expensive, particularly as cybersecurity, digital onboarding and regulatory compliance requirements become more demanding.

OneStack's latest funding reflects growing investor interest in technology platforms that help smaller financial institutions participate more actively in India's digital banking ecosystem.

As UPI adoption continues to expand, infrastructure providers such as OneStack could play an important role in helping cooperative banks modernise their services while retaining their independent identities and customer relationships.