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 fresh capital will support the company’s expansion among cooperative banks and non-banking financial companies (NBFCs), alongside investments in product development across payments, core banking and regulatory compliance.

Founded in 2019 by Amit Kapoor, OneStack provides digital banking infrastructure that enables smaller financial institutions to offer technology-driven banking services without having to develop their own systems.

With this latest investment, the company has raised approximately ₹45 crore across four funding rounds.

Strengthening Digital Banking Infrastructure for Smaller Banks

OneStack focuses on providing technology solutions to cooperative banks and other financial institutions seeking to expand their digital banking capabilities.

Its platform includes mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management and OneCBS, its core banking system.

The company’s solutions are designed to help financial institutions digitise banking operations, improve customer access and offer payment services while maintaining control over their customer relationships and transaction infrastructure.

The latest funding comes as smaller banks increasingly look to modernise their technology systems and expand digital payment services.

Enabling Cooperative Banks to Offer UPI Services Directly

A key part of OneStack’s offering is its UPI infrastructure for cooperative banks.

According to the company, banks using its platform can operate as UPI issuers and acquirers directly with the National Payments Corporation of India (NPCI), under their own bank handles.

This enables participating banks to issue UPI IDs to customers, onboard merchants and settle payments through their own payment rails.

The model also allows banks to retain customer relationships, transaction data and merchant discount rate (MDR) revenue rather than relying entirely on third-party payment platforms.

The company is positioning this capability as a way for cooperative banks to strengthen their participation in India’s digital payments ecosystem.

Expanding Solutions for NBFCs and Regulatory Compliance

Alongside its cooperative banking business, OneStack plans to extend its platform to NBFCs through tools for customer verification and fraud reporting.

Its compliance technology suite includes integration with the Indian Cyber Crime Coordination Centre (I4C), supporting financial institutions in addressing digital fraud and regulatory requirements.

The company also operates as an Aadhaar Offline Verification Seeking Entity (OVSE) technology service provider. Its integrations include eKYC Setu, while its credentials include RuPay debit card issuance certification and SU3J licences under credit bureaus.

These capabilities form part of OneStack’s broader strategy to provide financial institutions with integrated banking, payments and compliance infrastructure.

Partnership Opens Access to More Than 250 Cooperative Banks

OneStack has also partnered with a large private sector bank that sponsors more than 250 cooperative banks.

The partnership is expected to provide the company with a distribution channel to offer UPI issuing, merchant acquiring and its broader banking technology platform across the sponsor bank’s cooperative banking network.

The company currently claims to serve more than 200 banks across India, including state cooperative banks, district central cooperative banks (DCCBs) and non-scheduled urban cooperative banks (NSUCBs).

Expanding through institutional partnerships could help OneStack reach more financial institutions without depending solely on individual bank acquisitions.

India’s Cooperative Banking Network Offers a Significant Opportunity

India’s cooperative banking sector represents a substantial opportunity for fintech infrastructure providers.

According to NABARD’s 2024–25 annual report, India had 34 state cooperative banks and 351 district central cooperative banks, operating nearly 15,900 branches as of March 2025.

These institutions play an important role in providing financial services across urban, semi-urban and rural markets. However, technology modernisation, digital payments adoption and regulatory compliance remain important priorities for many smaller institutions.

Companies such as OneStack are looking to address these requirements through core banking systems, mobile applications, payment infrastructure and compliance solutions.

Competition in Banking Infrastructure Technology

OneStack operates in a growing segment of fintech infrastructure providers serving banks, NBFCs and other financial institutions.

Other companies in this space include RUGR Fintech, which raised $5 million in pre-Series A funding in September 2025 to expand its digital payments and rural banking infrastructure.

Banking infrastructure startup TransBnk also raised $25 million in a Series B funding round in August 2025, led by Bessemer Venture Partners, to scale its transaction banking, escrow management and payment infrastructure.

As financial institutions continue to invest in digital transformation, competition among technology providers is expected to intensify around payment systems, banking software, automation and regulatory compliance.

OneStack Looks to Scale Its Banking Technology Network

With ₹12.5 crore in fresh funding, OneStack is looking to strengthen its position as a technology infrastructure provider for India’s cooperative banking and NBFC ecosystem.

Its focus on UPI issuing, merchant acquiring, core banking and compliance solutions reflects the growing demand for integrated digital infrastructure among smaller financial institutions.

The company’s next phase of growth will depend on expanding its banking partnerships, strengthening its product capabilities and converting the demand for digital banking services into wider institutional adoption.

About OneStack

Founded in 2019 by Amit Kapoor, OneStack is a Mumbai-based fintech infrastructure company providing digital banking technology to cooperative banks and other financial institutions. Its platform includes mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management, core banking software and regulatory compliance solutions.

By : Vanshika Tayal