Mumbai-based fintech startup OneStack secures $2M (INR 17 Cr) in a Series A funding round led by Pentathlon Ventures. The funding also saw participation from Yatra Angel Network, 100Unicorns, and Venture Catalysts. The fresh capital will help OneStack expand into southern and eastern India, targeting 200 additional banks to capture a 20% pan-India market share.
Founded in 2019 by Amit Kapoor and Vishal Gupta, OneStack provides core banking solutions to co-operative banks and credit societies. The company focuses on digitizing rural banking services by integrating mobile banking, UPI, Bharat Bill Payment System (BBPS), and other financial services like insurance and mutual fund investments. The funding round marks a significant milestone in OneStack’s journey toward financial inclusion for 5 crore Indians in the next 18 months.
1. Introduction: OneStack’s Vision for Co-Operative Banking
OneStack aims to revolutionize co-operative banking by offering technology-driven solutions. The company helps rural and semi-urban banks modernize their services, bridging the gap between traditional banking and digital transformation. By enabling core banking solutions, OneStack ensures that smaller financial institutions can compete with larger banks in offering seamless digital banking services.
2. How OneStack Works: Business Model and Services
OneStack operates as a technology service provider (TSP) for co-operative banks and credit societies. It offers a suite of digital banking solutions, including:
- Mobile banking: Enables customers to access their accounts via smartphones.
- Unified Payments Interface (UPI): Facilitates instant money transfers and digital transactions.
- Bharat Bill Payment System (BBPS): Centralizes bill payments for various services.
- Financial services integration: Allows banks to offer lending, insurance, and investment options.
By providing these services, OneStack empowers rural banks to expand their digital presence and enhance financial inclusion.
3. OneStack’s Revenue Model: How It Generates Income
OneStack follows a B2B SaaS model, charging banks and financial institutions for its technology solutions. The revenue streams include:
- Subscription-based pricing: Banks pay recurring fees to access OneStack’s platform.
- Transaction fees: A percentage cut on UPI transactions and bill payments.
- Partnership commissions: Revenue from integrating third-party financial services like insurance and mutual funds.
This model ensures sustainable growth while maintaining affordability for smaller banks.
4. Funding and Investors: The Financial Backbone
OneStack secures $2M Series A funding was led by Pentathlon Ventures, with participation from Yatra Angel Network, 100Unicorns, and Venture Catalysts. Prior to this round, OneStack had raised INR 16 Cr from investors including AngeBay, Faad, Stride Ventures, and GrowX Ventures.
This financial backing will fuel OneStack’s expansion and technology enhancements, enabling it to onboard 200 more banks across India.
5. Founders and Their Backgrounds
OneStack was founded in 2019 by Amit Kapoor and Vishal Gupta. Both founders bring extensive experience in financial technology and banking solutions. Their vision is to digitize rural banking and create an inclusive financial ecosystem where smaller banks can leverage digital tools without heavy infrastructure investments.
6. Expansion Plans: Scaling Across India
With the latest funding, OneStack plans to expand into southern and eastern India, aiming to onboard 200 additional banks. The company’s goal is to capture 20% of India’s co-operative banking market by offering state-of-the-art banking solutions.
Additionally, OneStack secures $2M working to enhance its UPI infrastructure and BBPS capabilities, ensuring seamless digital payments and bill processing for millions of rural customers.
7. The Fintech Industry Landscape and Trends
The Indian fintech sector is booming, with total funding reaching $2.5 billion across 162 deals in 2024. Despite a 16% decline from the previous year, investor confidence remains strong, with fintech startups raising $180 million in just one week of 2025.
Neo-banking, digital lending, and super apps are reshaping the industry. Companies like MobiKwik, PhonePe, CRED, and Paytm are expanding their financial service offerings, creating competition for startups like OneStack.
8. Challenges in the Fintech Sector
Despite its growth, the fintech sector faces significant challenges, including:
- Regulatory hurdles: Compliance with RBI guidelines and data security laws.
- Customer adoption: Encouraging rural populations to shift to digital banking.
- Cybersecurity threats: Protecting sensitive financial data from fraud.
OneStack must navigate these obstacles while scaling its operations.
9. Learning for Startups and Entrepreneurs
- Niche market focus: Targeting co-operative banks allows OneStack to address an underserved segment.
- Strong investor backing: Strategic funding helps in scaling and technological advancements.
- Regulatory compliance: Adhering to financial laws ensures long-term sustainability.
- Customer-centric innovation: Providing seamless digital solutions improves adoption rates.
- Scalability: Expanding in phases helps mitigate risks while growing steadily.
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