OneStack raises $1.32M to wire India's cooperative banks into UPI
What's the deal? Fintech infrastructure company OneStackDealroom has a profile for this one. Try Dealroom → has raised US$1.7M from Shepherd's HillDealroom has a profile for this one. Try Dealroom →, which led the round, alongside existing backers Pentathlon VenturesDealroom has a profile for this one. Try Dealroom → and AVNM VenturesDealroom has a profile for this one. Try Dealroom →.
What's the endgame? Founded by Amit Kapoor, OneStack provides technology that lets smaller financial institutions offer digital banking without building the systems themselves. Its platform spans mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management, and core banking.
Why now? The funding lands as OneStack's partner cooperative banks go live as both UPI issuers and acquirers directly with the National Payments Corporation of India (NPCI)Dealroom has a profile for this one. Try Dealroom →, under their own bank handles.
“Cooperative banks have always had their communities' trust, but on UPI they were disconnected from their own customers,” Kapoor said. He added that putting the bank “at the centre of every payment its customers make” removes the intermediary.
What's next? The capital will fund expansion across cooperative banks and NBFCs, plus product work in payments, core banking, and regulatory compliance. For NBFCs, OneStack is adding tools for customer verification and fraud reporting.
The company serves more than 200 banks, including state cooperative banks, district central cooperative banks, and non-scheduled urban cooperative banks. It has partnered with a large private-sector bank that sponsors more than 250 cooperative banks, and has been onboarded as a technology service provider on Sahakar Sarathi, a shared services entity promoted by NABARD, NCDC, and rural cooperative banks.
The signal: Investors keep backing a narrow but strategic niche — the plumbing that connects India's under-digitised cooperative banks to the country's payments rails. OneStack's reported customer reach remains a company claim, but continued funding points to appetite for specialised banking infrastructure.
Read more: entrepreneur.economictimes.indiatimes.com
Image credit: Generated with Gemini
