The fintech says partner banks are now live on UPI as issuers and acquirers under their own handles, while the new funding will support expansion and product development.
OneStack, a fintech infrastructure company that sells software to cooperative banks, has raised ₹12.5 crore in fresh funding from Shepherd’s Hill, with existing investors Pentathlon Ventures and AVNM Ventures also taking part. The company says the money will help it expand across cooperative banks and non-banking financial companies, while broadening products for payments, core banking and regulatory compliance.
According to OneStack, some partner banks are now live on the Unified Payments Interface as both issuers and acquirers, operating directly with the National Payments Corporation of India under their own bank handles. In practical terms, that would allow a cooperative bank to create UPI identities for customers, onboard merchants and settle transactions itself rather than relying on a larger sponsor bank or a third-party app. Amit Kapoor, the company’s founder and chief executive, said the model puts the bank at the centre of the payment relationship, keeping both customer data and transaction economics closer to the institution.
The latest round adds to a funding trail that has accelerated over the past two years. Entrepreneur India reported in March 2025 that OneStack closed a $2 million Series A round led by Pentathlon Ventures, while The Economic Times later reported in February 2026 that the company secured another round led by Samved VC and Silicon Road Ventures. OneStack now says it has raised more than ₹45 crore in total across four rounds, and says its platform also covers tools for customer verification and fraud reporting for NBFCs.
The company says it already works with more than 200 banks, including state cooperative banks, district central cooperative banks and urban cooperative banks. That figure matches the number it has previously disclosed, suggesting the new financing is aimed less at increasing the headline customer count than at deepening usage within the network. OneStack also says it has signed a partnership with a large private-sector bank that sponsors more than 250 cooperative banks, though it has not named the institution, and says it has been onboarded as a technology provider on Sahakar Sarathi, the shared-services platform backed by NABARD, NCDC and rural cooperative banks.
OneStack is also leaning on changes to the economics of UPI merchant payments. Government information released in September set out a merchant discount rate framework for specified person-to-merchant transactions above ₹2,000, with a 0.4% charge capped at ₹300 on larger payments and flat rates for categories such as railways, telecoms, insurance and fuel. The Supreme Court later declined to grant an interim stay, but that did not settle the broader challenge, and the timing of full implementation has remained uncertain. Industry estimates of the annual fee pool vary widely, and the company appears to see cooperative banks as well placed to benefit if more of that activity flows through their own systems. Official figures from the Ministry of Cooperation show the sector includes 1,457 urban cooperative banks, 34 state cooperative banks and 351 district central cooperative banks, underlining the scale of the market OneStack is targeting.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
