OneStack, a fintech startup that builds banking and payments technology for cooperative banks, has raised Rs 12.5 crore in a funding round from new investor Shepherd's Hill and existing backers Pentathlon Ventures and AVNM Ventures.

The startup said the raised capital will fund expansion across cooperative banks and non-banking financial companies (NBFCs), along with product development in payments, core banking and regulatory compliance.

Including this round, OneStack has raised more than Rs 45 crore across four funding rounds. Its other investors include 9Unicorns, growX Ventures, Stride Ventures, Samved VC, Silicon Road Ventures and Venture Catalysts.

The investment from Shepherd's Hill comes from its maiden private equity fund, launched in 2025. The India-based asset manager has invested in Indian listed equities since 2011, and the new fund is sector-agnostic.

Alongside the funding, OneStack said cooperative banks using its platform are now live as both UPI issuers and acquirers directly with the National Payments Corporation of India (NPCI), each under its own bank handle.

That means a cooperative bank can issue UPI IDs to its own customers, sign up its own merchants and settle payments on its own rails. The startup said the bank keeps the customer relationship, the transaction data and the merchant discount rate (MDR) and other payment revenue, instead of passing them through a larger intermediary bank.

"Cooperative banks have always had their communities' trust, but on UPI they were disconnected from their own customers," said Amit Kapoor, founder and CEO of OneStack.

"That puts the bank, not an intermediary, at the centre of every payment its customers make."

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