Fintech startup OneStack raises $2 million in funding, aims to make every Bharat bank a neo-bank

OneStack, a fintech startup focused on digitizing cooperative banks, has raised $2 million in a Series A funding round, with an additional $1 million expected to follow as part of the same round.

The investment was led by Pentathlon Ventures, with participation from Yatra Angel Network, 100Unicorns, and Venture Catalysts.

What does OneStack do?

Founded by Amit Kapoor and Vishal Gupta, OneStack functions as a Technical Service Provider (TSP) and Application Service Provider (ASP), offering a comprehensive technology stack to cooperative banks.

Its suite of services includes Core Banking, Mobile Banking, NPCI UPI Switch, and BBPS Switch, allowing regional and rural financial institutions to modernize their operations and compete with larger commercial banks.

"Our mission is to make every Bharat bank a neo-bank," said Amit Kapoor, Co-founder of OneStack.

"With this funding, we aim to expand into South and East India, bringing 200+ more banks onto our platform. We will also deploy Core Banking Solutions (CBS) across 50+ institutions and onboard 100+ banks onto our NPCI UPI & BBPS Switch, allowing them to offer UPI services under their own branding. This expansion will impact financial inclusion for five crore Indians in the next 18 months."

Equipping cooperative banks with SaaS-based solutions

The cooperative banking sector plays a vital role in providing financial services to 50% of India’s bankable population but has traditionally lagged in digital adoption. OneStack addresses this gap by equipping cooperative banks with SaaS-based solutions, enabling them to increase CASA deposits, offer credit facilities, and integrate insurance products.

Currently, OneStack supports over 200 cooperative banks, including seven of India's 34 State Cooperative Banks. Its platform serves a vast customer base, reaching 35 crore Indians and six crore MSMEs.

The UPI Switch and BBPS Switch allow partner banks to issue branded UPI IDs and process Bharat BillPay transactions independently, reducing reliance on third-party fintech platforms.

Since its last funding round, OneStack has deployed over 6,000 Soundboxes in 14 regional languages, improving payment accessibility in rural and Tier II/III markets.

Investors comment

"OneStack’s unique positioning as a full-stack enabler for cooperative banks aligns with our vision of democratizing access to banking infrastructure," said Dr. Apoorva Ranjan Sharma, Managing Director of Venture Catalysts. "Their ability to penetrate Tier II/III markets and deliver ROI-driven solutions positions them as a key player in the next wave of banking digitization."

Sandeep Chawda, Managing Partner at Pentathlon Ventures, said, "India’s cooperative banking sector serves over 230 million people but remains largely underserved when it comes to digitization. OneStack is bridging this gap, not just by digitizing banks but also by unlocking new efficiencies, trust, and financial inclusion at scale. We are excited to lead this round and support OneStack in revolutionizing Bharat’s financial landscape."