OneStack Secures $2 Million Funding to Digitize Bharat Banks into Neo-Banks

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Fintech startup OneStack is on a mission to revolutionize cooperative banking in India, securing a fresh injection of $2 million in Series A funding. The round was spearheaded by Pentathlon Ventures, with significant participation from Yatra Angel Network, 100Unicorns, and Venture Catalysts. This investment aims to fuel OneStack’s expansion and further empower cooperative banks with cutting-edge technology. An additional $1 million is expected in the same funding round.

Making Bharat Banks Future-Ready

OneStack, co-founded by Amit Kapoor and Vishal Gupta, operates as a Technical Service Provider (TSP) and Application Service Provider (ASP). Their core mission is to equip cooperative banks with the digital tools necessary to compete in today’s fast-paced financial landscape. They provide a comprehensive suite of services, including:

  • Core Banking Solutions: Modernizing the very foundation of banking operations.

  • Mobile Banking: Bringing convenient banking services to customers’ fingertips.

  • NPCI UPI Switch: Enabling banks to offer their own branded UPI services.

  • BBPS Switch: Streamlining bill payment processes.

“Our mission is to make every Bharat bank a neo-bank,” says 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.”

Empowering Cooperative Banks with SaaS Solutions

Cooperative banks play a crucial role in serving a large segment of India’s population, particularly in rural areas. However, they often lag behind in adopting digital technologies. OneStack addresses this gap by offering SaaS-based solutions, enabling these banks to:

  • Increase CASA (Current Account Savings Account) deposits.

  • Offer diverse credit facilities.

  • Integrate insurance products seamlessly.

Currently, OneStack supports over 200 cooperative banks, including seven of India’s 34 State Cooperative Banks. Their platform already serves a massive customer base of 35 crore Indians and six crore MSMEs.

Key Highlights

  • UPI and BBPS Empowerment: OneStack’s UPI Switch and BBPS Switch empower partner banks to issue branded UPI IDs and process Bharat BillPay transactions independently, reducing reliance on third-party platforms.

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

Investor Confidence

Dr. Apoorva Ranjan Sharma, Managing Director of Venture Catalysts, highlighted OneStack’s potential, stating, “OneStack’s unique positioning as a full-stack enabler for cooperative banks aligns with our vision of democratizing access to banking infrastructure. 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, added, “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.”

With this new funding, OneStack is poised to accelerate its mission of transforming cooperative banks into modern, tech-enabled institutions, ultimately driving financial inclusion for millions across India.