OneStack Raises Rs 12.5 Crore from Shepherd's Hill, Pentathlon Ventures and AVNM Ventures

Mumbai-based fintech infrastructure startup OneStack has raised Rs 12.5 crore from new investor Shepherd's Hill, alongside existing backers Pentathlon Ventures and AVNM Ventures.

The fresh capital will be used to expand the company's presence among cooperative banks and non-banking financial companies (NBFCs), while supporting product development across payments, core banking and regulatory compliance.

Founded in 2019 by Amit Kapoor, OneStack provides technology infrastructure that helps smaller financial institutions offer digital banking services without having to build and maintain their own technology systems.

Digital banking infrastructure for cooperative banks

OneStack's platform covers several banking and payment services, including mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management and its OneCBS core banking system.

A key part of its offering enables cooperative banks to operate as UPI issuers and acquirers directly with the National Payments Corporation of India (NPCI), using their own bank handles.

This allows participating banks to issue UPI IDs to customers, onboard merchants and settle payments through their own payment rails. According to the company, the model also allows banks to retain customer relationships, transaction data and merchant discount rate (MDR) revenue.

The approach is aimed at helping smaller financial institutions expand their digital payment capabilities while maintaining greater control over their banking operations.

Expanding into NBFC technology and compliance

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

Its compliance suite includes integration with the Indian Cyber Crime Coordination Centre (I4C). The company is also an Aadhaar OVSE technology service provider, has integrated eKYC Setu and holds RuPay debit card issuance certification and SU3J licenses under credit bureaus.

OneStack has also partnered with a large private sector bank that sponsors more than 250 cooperative banks. The partnership is expected to provide a distribution route for OneStack's UPI issuing, merchant acquiring and broader banking technology platform across the bank's cooperative network.

The company 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).

A large technology opportunity in cooperative banking

India's cooperative banking sector represents a significant potential market for technology providers.

According to NABARD's 2024-25 annual report, India had 34 state cooperative banks and 351 district central cooperative banks, which together operated nearly 15,900 branches as of March 2025.

As financial institutions increasingly adopt digital banking, payment infrastructure and compliance systems, technology providers are targeting this segment with core banking software, mobile banking applications and digital payment solutions.

OneStack operates in a competitive market alongside companies such as RUGR Fintech and TransBnk.

RUGR Fintech raised $5 million in pre-Series A funding in September 2025, led by Vikasa India EIF I Fund, to expand its digital payments and rural banking infrastructure. TransBnk raised $25 million in a Series B round in August 2025, led by Bessemer Venture Partners, to scale its transaction banking, escrow management and payment infrastructure.

OneStack's funding history

The latest funding round brings OneStack's total capital raised to Rs 45 crore across four funding rounds.

The startup had previously raised $2 million in a Series A round in March 2025, led by Pentathlon Ventures, with participation from Yatra Angel Network and existing investors 100Unicorns and Venture Catalysts.

With its latest capital, OneStack plans to strengthen its banking and payment infrastructure, deepen its reach among cooperative banks and expand into the NBFC segment.