OneStack, a fintech startup focused on modernizing cooperative banks, has secured $2 million in a Series A funding round, with an additional $1 million expected. Led by Pentathlon Ventures, with participation from Yatra Angel Network, 100Unicorns, and Venture Catalysts, this investment fuels OneStack’s mission to bridge the digital gap in the cooperative banking sector.
Bridging the Digital Divide for Cooperative Banks
Founded by the visionary duo, Amit Kapoor and Vishal Gupta, OneStack operates as a Technical Service Provider (TSP) and Application Service Provider (ASP), delivering a comprehensive suite of technological solutions tailored specifically for cooperative banks. Recognizing the crucial role these institutions play in serving a significant portion of India’s population, particularly in rural and semi-urban areas, OneStack aims to equip them with the digital tools necessary to thrive in today’s rapidly evolving financial landscape.
OneStack’s offerings are designed to address the technological gaps that often hinder cooperative banks from competing effectively with larger commercial entities. Their robust suite of services includes essential components like Core Banking, Mobile Banking, and critical integrations such as the NPCI UPI Switch and BBPS Switch. By providing these advanced capabilities, OneStack is enabling regional and rural financial institutions to modernize their operations, enhance customer experience, and ultimately, better serve their communities.
Ambitious Growth Plans to Empower “Bharat Banks”
Amit Kapoor, Co-founder of OneStack, articulated the company’s ambitious vision, stating, “Our mission is to make every Bharat bank a neo-bank.” This powerful statement encapsulates OneStack’s commitment to transforming traditional cooperative banks into digitally empowered entities, capable of offering services on par with modern neo-banks.
The newly secured funding will be instrumental in driving OneStack’s expansion into the South and East Indian markets, with the goal of onboarding over 200 additional banks onto their platform. Furthermore, a significant portion of the investment will be directed towards deploying Core Banking Solutions (CBS) across more than 50 institutions. A key focus will also be on integrating over 100 banks onto their NPCI UPI & BBPS Switch, enabling these banks to offer UPI services under their own branding, thereby strengthening their identity and customer relationships. OneStack estimates that this strategic expansion will positively impact financial inclusion for an impressive five crore Indians within the next 18 months.
Equipping Cooperative Banks with SaaS-Based Solutions for Enhanced Services
The cooperative banking sector holds a vital position in the Indian financial ecosystem, providing essential services to a significant 50% of the country’s bankable population. However, this sector has historically lagged behind in the adoption of digital technologies. OneStack is directly addressing this challenge by providing cooperative banks with Software-as-a-Service (SaaS) based solutions. These solutions empower banks to enhance their operational efficiency, increase their CASA deposits, offer a wider range of credit facilities, and seamlessly integrate insurance products, ultimately leading to improved service delivery and customer satisfaction.
Currently, OneStack supports a substantial network of over 200 cooperative banks, including seven of India’s 34 State Cooperative Banks. Their platform serves a vast customer base, reaching an impressive 35 crore individuals and six crore Micro, Small, and Medium Enterprises (MSMEs), highlighting the significant scale of their impact.
The implementation of OneStack’s UPI Switch and BBPS Switch is particularly transformative, allowing partner banks to issue branded UPI IDs and independently process Bharat BillPay transactions. This reduces their reliance on third-party fintech platforms, giving them greater control over their services and enhancing their brand visibility.
Since its previous funding round, OneStack has demonstrated its commitment to reaching underserved populations by deploying over 6,000 Soundboxes in 14 regional languages. This initiative has significantly improved payment accessibility in rural and Tier II/III markets, further contributing to financial inclusion.
Investor Confidence in OneStack’s Impact
Investors are optimistic about OneStack’s potential. Dr. Apoorva Ranjan Sharma of Venture Catalysts highlighted OneStack’s unique positioning in democratizing banking infrastructure. Sandeep Chawda of Pentathlon Ventures emphasized the underserved nature of the cooperative banking sector and OneStack’s role in driving digitization and financial inclusion. This funding underscores the belief in OneStack’s ability to revolutionize India’s financial landscape.
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