Mumbai-based fintech infrastructure company OneStack has raised Rs 12.5 crore in a fresh funding round led by new investor Shepherd’s Hill.
Existing investors Pentathlon Ventures and AVNM Ventures also joined the round, which the company announced in a press release on 4 November.
The money will help OneStack reach more cooperative banks and non-banking financial companies, and deepen its work on payments, core banking and regulatory compliance.
What the money is for
OneStack sells technology to smaller financial institutions so they can offer digital banking without building the systems themselves.
Its platform covers mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management and a core banking system called OneCBS.
The company also plans to extend its platform to NBFCs with new tools for customer verification and fraud reporting.
With this round included, OneStack says it has raised more than Rs 45 crore across four funding rounds so far.
Why direct UPI access matters for cooperative banks
The heart of the story is UPI. Cooperative banks on OneStack can now operate as UPI issuers and acquirers directly with the National Payments Corporation of India, under their own bank handles.
That means a bank can issue UPI IDs to its customers and onboard merchants itself, instead of routing payments through an intermediary that owns the customer relationship.
Owning both sides of the payment also changes the economics. NPCI has notified a 0.4% fee on select merchant payments above Rs 2,000, capped at Rs 300, though the start date has been deferred.
Credit on UPI is a related frontier. Kiwi raised $13 million to expand credit on UPI, showing how much building is happening on the same rails.
Cooperative banks have always had their communities’ trust, but on UPI they were disconnected from their own customers. Today our partner banks are live as UPI Issuers and Acquirers directly with NPCI, under their own handles. That puts the bank, not an intermediary, at the centre of every payment its customers make.
Amit Kapoor, Co-founder and CEO, OneStack
Ashutosh Ghanekar, General Partner at Shepherd’s Hill, said the fund was excited to back Kapoor and the OneStack team as they bring cooperative banks and their customers onto modern financial rails.
OneStack says it serves more than 200 banks, including state cooperative banks, district central cooperative banks and non-scheduled urban cooperative banks.
The market OneStack is chasing
Cooperative banks are a large but under-digitised corner of Indian banking. Pentathlon Ventures, an early OneStack investor, notes that more than 1,00,000 cooperative banks serve over 230 million people across the country.
The Reserve Bank of India counts 1,457 urban cooperative banks, which held deposits of Rs 5.84 lakh crore and advances of Rs 3.70 lakh crore at the end of March 2025.
UPI itself keeps setting records. NPCI data shows the network processed 25.47 billion transactions worth Rs 31.53 lakh crore in October 2026, with average daily value crossing Rs 1 lakh crore for the first time.
OneStack said in February that it processed more than Rs 750 crore in annual UPI transaction value and aimed to reach Rs 1,000 crore by the end of the year.
Investor appetite for Indian fintech has held up through 2026. PowerUp Money raised $10 million led by Flourish Ventures to build an AI wealth manager.
Built in layers, not ripped out and replaced
OneStack was founded in 2019 by Amit Kapoor and Vishal Gupta. Kapoor previously co-founded payments company Airpay, while Gupta led teams at Baxter, Marico and Nando’s India before joining as chief operating officer.
The company started as a white-label mobile banking provider and grew into a full-stack platform. Its stated mission is to make every Bharat bank a neo-bank.
Its earlier rounds trace that growth. A $2 million Series A in March 2025 was led by Pentathlon Ventures, followed by an undisclosed round in February 2026 led by Samved VC and Silicon Road Ventures.
Distribution is widening beyond direct sales. OneStack has partnered with a large private-sector bank that sponsors more than 250 cooperative banks, and it has been onboarded as a technology service provider on Sahakar Sarathi, a shared services entity promoted by NABARD, NCDC and rural cooperative banks.
Compliance is part of the pitch. The company has built a suite integrated with the Indian Cyber Crime Coordination Centre, and its platform includes SoundBox devices for merchant acceptance and Bharat Bill Payment System services.
What to watch next
The test now is execution. The funding is modest next to the scale of the sector, so the next twelve months will show whether more banks go live on direct UPI and whether the NBFC expansion finds customers.
If OneStack converts its sponsor-bank partnerships into live banks, the cooperative segment could finally get the digital rails its larger peers have had for years.
