OneStack Funding: Raises ₹12.5 Crore From Shepherd’s Hill
- OneStack raised ₹12.5 crore from Shepherd’s Hill, with participation from existing investors Pentathlon Ventures and AVNM Ventures.
- The startup has raised approximately ₹45 crore across four funding rounds, including its $2 million Series A round in March 2025.
- The company plans to expand into NBFCs with customer verification, fraud reporting and regulatory compliance solutions.
Fintech infrastructure startup OneStack has raised ₹12.5 crore in a funding round from new investor Shepherd’s Hill, along with existing backers Pentathlon Ventures and AVNM Ventures.
The Mumbai-based company plans to use the fresh capital to expand its presence among cooperative banks and non-banking financial companies (NBFCs). The funding will also support product development across payments, core banking and regulatory compliance.
The latest investment follows OneStack’s $2 million Series A round in March 2025, led by Pentathlon Ventures, with participation from Yatra Angel Network and existing investors 100Unicorns and Venture Catalysts. With the latest round, the company has raised approximately ₹45 crore across four funding rounds, according to the company.
About OneStack
Founded in 2019 by Amit Kapoor, OneStack provides digital banking infrastructure that enables smaller financial institutions to offer technology-led banking services without building their own systems.
Its platform includes mobile banking applications, UPI issuing and merchant acquiring, QR payments, debit card management and OneCBS, its core banking system. The company says it currently serves more than 200 banks across India, including state cooperative banks, district central cooperative banks (DCCBs) and non-scheduled urban cooperative banks (NSUCBs).
A key development in its platform is the ability for cooperative banks to operate as UPI issuers and merchant acquirers directly with the National Payments Corporation of India (NPCI) under their own bank handles.
This allows participating banks to issue UPI IDs to customers, onboard merchants and manage payment settlements through their own payment infrastructure. It also enables them to retain customer relationships, transaction data and merchant discount rate (MDR) revenue rather than depending entirely on third-party payment platforms.
OneStack has also partnered with a large private-sector bank that sponsors more than 250 cooperative banks. The partnership provides a distribution channel for its UPI issuing, merchant acquiring and wider digital banking services across the sponsored bank network.
Fresh Funding to Support NBFC Expansion
Beyond cooperative banks, OneStack plans to extend its technology platform to NBFCs. Its proposed offerings include tools for customer verification and fraud reporting, alongside its existing banking and payments infrastructure.
The company is also developing its regulatory and compliance capabilities. Its platform includes integration with the Indian Cyber Crime Coordination Centre (I4C) for cybercrime-related processes. OneStack says it is an Aadhaar Offline Verification Seeking Entity (OVSE) technology service provider, has integrated eKYC Setu and holds RuPay debit card issuance certification and SU3J licences under credit bureaus.
The latest funding will support further development across these products as the company expands its institutional customer base.
OneStack’s focus is on providing smaller financial institutions with digital banking capabilities that are generally more expensive and complex to develop independently. Its expansion into NBFCs could also extend the use of its infrastructure beyond cooperative banking.
