Fintech platform OneStack, focused on empowering cooperative banks in India, has raised $2 million in a Series A funding round, with an additional $1 million expected as part of the same round. The funding was led by Pentathlon Ventures, alongside contributions from Yatra Angel Network and existing investors 100Unicorns and Venture Catalysts.
Founded by Amit Kapoor and Vishal Gupta in 2019, OneStack aims to transform cooperative banks into neo-banks, bridging the digital divide for underserved markets. The company provides a unified technology stack that includes Core Banking Solutions (CBS), Mobile Banking, NPCI UPI Switch, and Bharat Bill Payment System (BBPS) Switch. These solutions modernize operations and enable regional banks to compete with larger institutions.
With this funding, OneStack plans to expand its footprint into South and East India, targeting over 200 additional banks to achieve a pan-India market share of 20%. The company also aims to deploy CBS across 50 institutions and onboard 100 banks onto its UPI & BBPS Switch, empowering them to offer branded UPI services. This expansion will impact financial inclusion for approximately 5 crore Indians within the next 18 months.
Currently supporting over 200 cooperative banks, OneStack holds a 20% market share in North and West India. It serves 35 crore Indians and 6 crore MSMEs, addressing critical gaps in the cooperative banking sector, which provides financial access to nearly half of India’s bankable population. By leveraging its SaaS-based model, OneStack enables partner banks to increase CASA deposits, offer credit facilities, and deliver insurance products.
The company’s innovative UPI Switch and BBPS Switch allow partner banks to issue branded UPI IDs and process Bharat BillPay transactions independently, reducing reliance on third-party platforms. Since its last funding round, OneStack has deployed over 6,000 Soundboxes in 14 regional languages to enhance payment connectivity in rural areas.
Dr Apoorva Ranjan Sharma, Managing Director at Venture Catalysts, highlighted OneStack’s role as a full-stack enabler for cooperative banks, stating that its solutions are driving ROI-driven growth in Tier II/III markets. Similarly, Sandeep Chawda, Managing Partner at Pentathlon Ventures, emphasized the company’s disruptive impact on India’s cooperative banking sector by unlocking efficiencies and fostering financial inclusion at scale.
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OneStack’s asset-light SaaS model ensures predictable revenue streams while scaling with partner institutions. Its upcoming expansion will include localized onboarding teams and vernacular support to cater to diverse regional needs.
With this funding milestone, OneStack is poised to revolutionize Bharat’s financial landscape while establishing itself as a category leader in cooperative banking technology.
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