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OneStack raises Rs 12.5 Cr to put cooperative banks live on UPI under their own handles
Shepherd's Hill leads a fresh cheque with Pentathlon Ventures and AVNM Ventures as the Mumbai fintech says partner banks can now issue and acquire UPI directly with NPCI.
Mumbai based fintech infrastructure company OneStack has raised Rs 12.5 crore from new investor Shepherd's Hill and existing backers Pentathlon Ventures and AVNM Ventures, Entrackr and Economic Times Entrepreneur reported on November 4, 2026. The company said in a press release cited by both outlets that the money will expand its reach among cooperative banks and NBFCs and fund product work in payments, core banking and regulatory compliance. Entrackr said the round takes OneStack's total capital raised to about Rs 45 crore across four rounds, after a $2 million Series A in March 2025 led by Pentathlon Ventures.
Founded by Amit Kapoor in 2019, OneStack builds technology that lets smaller financial institutions offer digital banking without assembling the stack themselves. Entrackr and ET Entrepreneur list mobile banking, UPI issuing and merchant acquiring, QR payments, debit card management and the OneCBS core banking system among its products. The company told reporters it already serves more than 200 banks, including state cooperative banks, district central cooperative banks and non scheduled urban cooperative banks.
The timing matters for UPI. OneStack said partner cooperative banks are now live as both UPI issuers and acquirers directly with the National Payments Corporation of India under their own bank handles. That lets them issue UPI IDs, onboard merchants and settle through their own rails while keeping customer relationships, transaction data and merchant discount rate revenue, according to Entrackr. Kapoor told ET Entrepreneur that putting the bank, not an intermediary, at the centre of each payment was the point of the model.
Growth plans lean on distribution partners. OneStack has tied up with a large private sector bank that sponsors more than 250 cooperative banks, and it has been onboarded as a technology service provider on Sahakar Sarathi, a shared services entity promoted by NABARD, NCDC and rural cooperative banks, ET Entrepreneur reported. For NBFCs it is adding customer verification and fraud reporting tools, with compliance links that Entrackr said include integration with the Indian Cyber Crime Coordination Centre (I4C). The raise is a bet that India's cooperative banking network can run modern UPI rails without losing control of the customer.
