OneStack plans to use the fresh funds to digitise over 1,000 cooperative banks and credit societies this year, increase team size, and establish offices across the country
The startup aspires to be the technical service provider for the co-operative sector by providing core banking solution (OneCBS), mobile banking applications, UPI/QR services, and soundbox
OneStack's addressable market includes over 1,200 urban cooperative banks, 8.5 Lakh societies, and more than 380 Mn Indians banking with cooperative banks and societies
Fintech startup OneStack on Wednesday (July 12) said it has raised $2 Mn from growX ventures, Venture Catalyst, Stride Ventures, 9Unicorns, Sunil Kulkarni and other existing investors.
OneStack plans to use the fresh funds to digitise over 1,000 cooperative banks and credit societies this year. The investment will also help it expand its team and establish offices across the country, OneStack said in a statement.
Founded in 2019 by Amit Kapoor, OneStack aspires to be the technical service provider (TSP) for the co-operative sector by providing core banking solutions (OneCBS), mobile banking applications, UPI/QR services, and soundbox.
The startup claims to have worked with over 200 banks and societies so far.
“This infusion of funds does more than merely enable us to augment our product suite and broaden our footprint across India; it propels our growth journey at an accelerated pace. With these additional resources, we are on the cusp of a revolution, empowering cooperative banks and credit societies to stand their ground in this digital epoch,” founder and CEO Kapoor said.
The addressable market for OneStack’s services includes over 1,200 urban cooperative banks, 8.5 Lakh societies, and more than 380 Mn Indians banking with cooperative banks and societies. The startup aims to help digitise these banks and societies so that they can compete with large banks and fintech companies.
“They (OneStack) have emerged as the catalysts, bridging the divide for the underserved segment by opening the gates to essential digital banking services and contributing both to the Digital Bharat initiative and the government’s financial inclusion goals,” said Ishpreet Singh Gandhi, founder and managing partner of Stride Ventures.
It is pertinent to note that OneStack is set to introduce SoundBox for cooperative banks and credit societies – a segment which is currently dominated by the likes of Paytm, PhonePe, BharatPe, and several banks.
Meanwhile, despite regulatory hurdles, India’s fintech ecosystem is witnessing significant growth. As per Inc42’s ‘State Of Indian Fintech Report Q1 2023’, the domestic fintech market is expected to reach a market size of $2.1 Tn by 2030, growing at a CAGR of 18% between 2022-2030.
However, hit by the finding winter, the total funding raised by fintech startups plunged 40% year-on-year (YoY) to $4.8 Bn in 2022. In H1 2023, fintech startups raised $2.1 Bn in total, a decline of 37% YoY.