OneStack, a rising fintech startup working to digitize cooperative banks, has raised $2 million in a Series A funding round. The company expects to receive an additional $1 million as part of the same round. The funding was led by Pentathlon Ventures, with participation from Yatra Angel Network, 100Unicorns, and Venture Catalysts.
Founded by Amit Kapoor and Vishal Gupta, OneStack aims to make regional and rural cooperative banks function like modern neo-banks. Its core mission is to bridge the gap in digital banking by equipping these banks with advanced technology solutions that help them compete with larger commercial banks.
Helping Cooperative Banks Go Digital
OneStack operates as both a Technical Service Provider (TSP) and an Application Service Provider (ASP). The startup offers a full technology stack that includes Core Banking Solutions (CBS), Mobile Banking, NPCI UPI Switch, and Bharat Bill Payment System (BBPS) Switch. These services enable cooperative banks to digitize their operations, increase efficiency, and offer better services to their customers.
With this new funding, OneStack plans to expand into South and East India, bringing over 200 more banks onto its platform. Amit Kapoor, Co-founder of OneStack, shared that the company aims to deploy Core Banking Solutions across 50 more institutions and onboard over 100 banks onto its UPI and BBPS Switch platforms. This move is expected to improve financial inclusion for around five crore Indians in the next 18 months.
Financial Inclusion with SaaS-Based Solutions
Cooperative banks play a crucial role in providing financial services to nearly half of India’s bankable population. However, many of these banks have struggled to adopt digital solutions. OneStack addresses this challenge by offering SaaS-based (Software-as-a-Service) solutions that help banks increase CASA deposits, provide credit services, and integrate insurance products.
Currently, OneStack works with over 200 cooperative banks, including seven of India’s 34 State Cooperative Banks. Its platform supports a large network of customers, serving 35 crore Indians and six crore MSMEs. By enabling banks to issue branded UPI IDs and process Bharat BillPay transactions independently, OneStack reduces their dependence on third-party fintech platforms.
Since its last funding round, OneStack has expanded its presence in rural and Tier II/III cities by deploying over 6,000 Soundboxes in 14 regional languages. This initiative has improved payment accessibility in smaller markets, helping businesses and customers alike.
Investor Support for OneStack’s Vision
The startup’s latest funding round received strong support from investors. Dr. Apoorva Ranjan Sharma, Managing Director of Venture Catalysts, highlighted OneStack’s role as a full-stack solution provider for cooperative banks. He noted that their ability to penetrate smaller markets and offer ROI-driven solutions positions them as a leader in banking digitization.
Sandeep Chawda, Managing Partner at Pentathlon Ventures, praised OneStack for addressing the digital gaps in India’s cooperative banking sector, which serves over 230 million people. He emphasized that the startup’s innovative approach is helping unlock efficiencies, build trust, and expand financial inclusion across rural India.
