OneStack raises ₹12.5 crore from Shepherd's Hill and others

Fintech infrastructure company OneStack has raised ₹12.5 crore in funding from Shepherd’s Hill and existing backers Pentathlon Ventures and AVNM Ventures.

The fresh capital will go towards expanding its presence across cooperative banks and non-banking financial companies (NBFCs). It will also fund product development in payments, core banking and regulatory compliance.

For NBFCs, OneStack is extending its platform with tools for customer verification and fraud reporting.

Founded by Amit Kapoor, OneStack provides technology infrastructure that lets smaller financial institutions offer digital banking without building the systems themselves.

Its platform covers mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management and core banking.

The company currently serves more than 200 banks, including state cooperative banks, district central cooperative banks and non-scheduled urban cooperative banks.

The funding comes as OneStack’s partner cooperative banks go live as both UPI issuers and acquirers directly with the National Payments Corporation of India (NPCI), under their own bank handles.

OneStack has also partnered with a large private-sector bank that sponsors more than 250 cooperative banks, providing a route to expand its UPI issuing, merchant acquiring and wider banking platform across the network.

It has also been onboarded as a technology service provider on Sahakar Sarathi, a shared services entity promoted by NABARD, NCDC and rural cooperative banks.

”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,” said Kapoor.