OneStack Bags $2 Mn To Boost Digital Capabilities Of Co-operative Banks

Mumbai-based fintech platform OneStack has secured $2 Mn (around INR 17 Cr) in a Series A funding round led by Pentathlon Ventures.

The round also saw participation from Yatra Angel Network, along with existing investors 100Unicorns and Venture Catalysts.

The startup plans to use the fresh capital to expand into southern and eastern pockets of the country. It also targets an additional 200 banks to achieve a pan-India market share of 20%.

It further seeks to deploy its core banking system solution such as unified payment interface (UPI), and enable Bharat Bill Payment System (BBPS) switch, which centralises bill payments, for various services in the country.

Founded in 2019 by Amit Kapoor and Vishal Gupta, OneStack is a technology service provider (TSP) that helps co-operative banks and credit societies to digitise and enhance their digital capabilities.

OneStack offers core banking solutions to rural cooperative banks such as mobile banking, UPI and BBPS.

The startup also helps to integrate other financial services with rural banks’ offerings which includes insurance, lending and investments into mutual funds and and gold.

Prior to this round, the banking-as-a-service (BaaS) platform had raised a total funding of INR 16 Cr, and counts AngeBay, Faad, Stride Ventures and GrowX Ventures as its investors.

“This expansion will directly impact financial inclusion for 5 Cr Indians over the next 18 months,” said Kapoor.

Fintechs’ Rush Towards Super App

Many fintech players in the industry are rushing towards building a super app, which means offering various kinds of financial and payment services from UPI, lending, enabling investments in stocks and other financial instruments.

Listed fintech MobiKwik was the latest in the run which has decided to enter the stock broking sector and also offer other financial services such as payments, spending analytics and plans to expand into insurance. Others in the race include Flipkart-owned PhonePe, BharatPe, CRED  and Paytm among others.

Funding In The Fintech Sector

Fintech has been one of the most cherished sectors for the Indian investors as it emerged as the most funded sector with a total funding of $2.5 Bn with 162 deals in 2024. However, the total funding saw a 16% decline from the previous year on a year-on-year basis, as per Inc42’s annual funding report 2024.

In fact, the bullish run of investors has continued in 2025 as well. As per Inc42’s funding glore analysis cover last week, fintech startups attracted about $180 Mn out of the total funding of $385 Mn done in the period.

According to Incr42’s research, the neo banking sector in India is growing at a CAGR of 18% to become a $183 Mn market by 2030.