OneStack Enables Indian Cooperative Banks to Access UPI Network Directly Through Indigenous Banking Technology

Indian financial technology startup OneStack has introduced a banking infrastructure solution that enables cooperative banks to participate directly in the Unified Payments Interface (UPI) ecosystem as both payment issuers and acquirers. The development allows participating banks to operate under their own UPI handles, issue payment identifiers to customers, onboard merchants and manage digital payment services through their own banking identities. The initiative represents an important advancement in extending India’s digital public infrastructure to smaller financial institutions and strengthening their participation in the country’s rapidly expanding digital payments ecosystem.

The announcement coincides with OneStack securing ₹12.5 crore in fresh funding from Shepherd’s Hill, Pentathlon Ventures and AVNM Ventures. The investment will support the company’s expansion among cooperative banks and non-banking financial companies (NBFCs), alongside further development of its payment processing, core banking and regulatory compliance technologies. Founded in 2019 by Amit Kapoor, OneStack specialises in providing integrated digital banking infrastructure to financial institutions that require advanced technology without independently developing and maintaining complex software platforms.

Cooperative Banks Gain Direct Access to UPI Infrastructure

Cooperative banks play an important role in India’s financial system, particularly in providing banking services to smaller businesses, agricultural communities, local enterprises and customers outside major metropolitan centres. However, many smaller institutions face technological and financial constraints when attempting to introduce sophisticated digital payment services comparable to those offered by large commercial banks.

OneStack’s platform addresses this challenge by enabling participating cooperative banks to operate as UPI issuers and acquirers through the National Payments Corporation of India (NPCI). According to the company, partner banks have begun operating directly within the UPI ecosystem using their own bank handles, allowing them to maintain control over customer relationships and merchant payment services.

In the UPI framework, an issuing bank provides payment capabilities to customers holding accounts with the institution, while an acquiring bank facilitates payment acceptance for merchants. By supporting both functions, OneStack’s technology allows cooperative banks to participate more extensively in the digital transaction process rather than depending entirely on intermediary banking arrangements.

This capability enables participating institutions to issue UPI identifiers, register merchants, facilitate payment acceptance and manage transaction information within their own banking environment. It also provides opportunities to strengthen customer engagement and develop additional digital financial services suited to local banking requirements.

Indigenous Platform Integrates Payments, Banking and Merchant Services

OneStack has developed a comprehensive technology platform that combines several banking functions within a unified infrastructure. Its offerings include mobile banking applications, UPI issuing, merchant acquiring, QR-code payments, debit-card management and core banking solutions. These services are designed to help financial institutions modernise their operations without building separate technology systems for each banking function.

A central component of the platform is OneCBS, the company’s core banking solution, which supports the management of banking operations and integration with digital financial services. By combining core banking infrastructure with payment technologies, OneStack aims to simplify the introduction of digital services across smaller financial institutions.

The company’s merchant payment infrastructure also supports QR-code transactions and SoundBox devices, allowing businesses to receive payment confirmations and manage digital transactions more efficiently. These capabilities are particularly relevant to small retailers, service providers and local businesses that increasingly rely on UPI for everyday commercial transactions.

For cooperative banks, an integrated technology platform can reduce the complexity of managing multiple technology providers while improving the consistency of services offered to customers. The availability of domestic financial technology infrastructure also supports the broader development of India’s indigenous digital banking ecosystem.

₹12.5 Crore Investment to Support Banking Technology Expansion

OneStack’s latest fundraising round was led by new investor Shepherd’s Hill, with participation from existing investors Pentathlon Ventures and AVNM Ventures. With this investment, the company has raised approximately ₹45 crore across four funding rounds, supporting the development and commercialisation of its banking technology products.

The fresh capital will be directed towards expanding the company’s presence among cooperative banks and NBFCs while strengthening its payments, core banking and compliance infrastructure. OneStack also plans to develop additional technology for financial institutions requiring specialised digital services, including customer verification, transaction monitoring and fraud reporting.

Founder and Chief Executive Officer Amit Kapoor highlighted the significance of allowing cooperative banks to operate directly within the UPI network. He explained that the company’s technology places participating banks at the centre of their customers’ digital payment activities, enabling them to maintain stronger relationships with account holders and merchants.

The funding follows earlier investments that helped OneStack expand from a provider of white-label mobile banking applications into a broader financial technology infrastructure company. Its current offerings address several operational requirements of cooperative banks, providing a foundation for further expansion across India’s diverse financial services sector.

Technology Platform Serves More Than 200 Banks

OneStack reports that its technology currently serves more than 200 banks across India, including state cooperative banks, district central cooperative banks and non-scheduled urban cooperative banks. The company’s customer base reflects the growing demand for modern banking infrastructure among smaller financial institutions seeking to expand their digital services.

The startup has also established a partnership with a major private-sector bank that sponsors more than 250 cooperative banks. This arrangement provides a potential distribution channel for introducing OneStack’s UPI issuing, merchant acquiring and banking technology products across a wider network of financial institutions.

Another important development is OneStack’s onboarding as a technology service provider on Sahakar Sarathi, a shared-services initiative promoted by institutions including the National Bank for Agriculture and Rural Development (NABARD) and the National Cooperative Development Corporation (NCDC).

These institutional relationships could support broader adoption of digital banking technologies among cooperative institutions, including those operating in rural and semi-urban markets. They also provide opportunities to extend modern payment and banking infrastructure to institutions that have traditionally depended on larger banks or external technology providers for advanced digital services.

Expanding Digital Banking Capabilities Across Rural India

India’s cooperative banking network represents a substantial component of the country’s financial infrastructure. According to NABARD’s Annual Report 2024–25, the country had 34 state cooperative banks and 351 district central cooperative banks operating approximately 15,900 branches as of March 2025.

These institutions serve agricultural communities, local businesses, cooperative societies and households across rural and semi-urban regions. Their ability to provide modern digital banking services is therefore closely connected to the wider objective of extending financial inclusion and convenient payment facilities throughout the country.

Technology platforms such as OneStack can help cooperative banks integrate with national digital payment infrastructure while maintaining their institutional identities and customer relationships. By enabling banks to issue UPI identifiers and provide merchant payment services directly, the technology supports wider participation in India’s digital economy.

For customers, the expansion of cooperative banking technology can improve access to mobile payments, digital account services and merchant transactions. For local businesses, greater participation by cooperative banks can expand the availability of payment acceptance infrastructure and associated banking services.

The development also provides cooperative institutions with opportunities to strengthen their competitiveness through digital services while continuing to serve the communities and economic activities that form the foundation of their operations.

Cybersecurity and Regulatory Compliance Form Part of Expansion

Alongside payments and core banking, OneStack is strengthening its regulatory compliance and financial security technology. The company has developed tools supporting customer verification, fraud reporting and compliance-related operations, addressing requirements that are becoming increasingly important as financial institutions expand digital transaction services.

According to the company’s disclosures, its compliance infrastructure includes integration with the Indian Cyber Crime Coordination Centre (I4C), while its digital identity capabilities include Aadhaar-based verification services and eKYC-related integrations.

OneStack has also reported RuPay debit-card issuance certification and relevant credit bureau licences, supporting its ability to provide additional technology services to participating financial institutions.

These capabilities are important because smaller banks must meet applicable regulatory and security requirements while managing the costs of technology development and maintenance. Integrated compliance solutions can help institutions introduce new digital products within established operational and regulatory frameworks.

The planned extension of OneStack’s platform to NBFCs will further expand its addressable market, particularly among financial institutions requiring digital customer onboarding, verification and fraud-monitoring systems.

Strengthening India’s Digital Public Infrastructure

OneStack’s latest development illustrates the growing role of Indian fintech startups in extending national digital infrastructure beyond large commercial banks and established payment platforms. By developing technology that enables cooperative institutions to participate more directly in UPI, the company is contributing to broader access to digital financial services.

The integration of payments, core banking, merchant services and regulatory compliance within a common technology platform offers smaller institutions an opportunity to modernise their operations while retaining control over their customer relationships. Such capabilities are especially relevant in a country where cooperative banks continue to serve important segments of the rural economy and local business community.

The ₹12.5 crore investment provides additional resources for expanding this technology across India’s cooperative banking and NBFC sectors. Together with its institutional partnerships and existing banking network, the funding supports OneStack’s efforts to broaden the availability of indigenous financial technology solutions.

As India’s digital payments ecosystem continues to expand, technology providers capable of connecting smaller financial institutions to national payment infrastructure are becoming increasingly important. OneStack’s direct-UPI integration initiative represents a significant step towards strengthening the participation of cooperative banks in India’s digital economy while supporting financial inclusion, domestic technology development and modern banking services across the country.

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