Fintech infra startup OneStack raises Rs 12.5 Cr funding led by Shepherd’s Hill, others
Fintech infrastructure startup OneStack has secured Rs 12.5 crore in funding from new investor Shepherd’s Hill, along with existing investors Pentathlon Ventures and AVNM Ventures.
The Mumbai-based company had earlier raised $2 million in a Series A round in March 2025, led by Pentathlon Ventures, with participation from Yatra Angel Network and existing backers 100Unicorns and Venture Catalysts. Following this latest round, OneStack’s total funding has reached Rs 45 crore across four rounds.
The fresh funds will be directed towards expanding its reach among cooperative banks and non-banking financial companies (NBFCs), as well as developing products across payments, core banking and regulatory compliance, the company said in a press release.
Founded in 2019 by Amit Kapoor, OneStack offers technology infrastructure that helps smaller financial institutions provide digital banking services without having to build their own systems. Its offerings include mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management and the OneCBS core banking system.
According to the company, cooperative banks using its platform can now directly operate as UPI issuers and acquirers with the National Payments Corporation of India (NPCI), using their own bank handles. This allows them to issue UPI IDs to customers, onboard merchants and settle transactions through their own payment rails, while retaining control of customer relationships, transaction data and merchant discount rate (MDR) revenue.
OneStack also plans to expand its platform for NBFCs by introducing tools for customer verification and fraud reporting. Its compliance suite is integrated 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.
Additionally, OneStack has entered into a partnership with a large private sector bank that sponsors over 250 cooperative banks. The arrangement will enable the company to offer UPI issuing, merchant acquiring and its broader banking platform across the bank’s network.
OneStack 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).
India’s cooperative banking sector offers a substantial opportunity for technology providers. According to NABARD’s 2024-25 annual report, the country had 34 state cooperative banks and 351 DCCBs, operating nearly 15,900 branches as of March 2025.
Several startups are building technology solutions for cooperative banks and other financial institutions to support their digital transformation. Their offerings span core banking software, mobile banking applications, payment systems and compliance tools.
Among these players, 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. Banking infrastructure startup TransBnk secured $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.
