Onestack Secures $2 Million in Series A Funding to Transform Cooperative Banking in India
Onestack, an innovative Fintech startup aimed at digitizing cooperative banks in India, has successfully raised $2 million in its Series A funding round, with an additional $1 million expected to follow shortly. This funding is a significant milestone that will help foster technological advancements in the cooperative banking sector.
Investment Overview
The funding round was primarily led by Pentathlon Ventures, with notable participation from Yatra Angel Network, 100UNICORNS, and Cataliars. These investments aim to strengthen Onestack’s capabilities, allowing cooperative banks to compete with larger commercial banks and modernize their operations.
About Onestack
Founded by Amit Kapoor and Vishal Gupta, Onestack operates as both a Technical Service Provider (TSP) and an Application Service Provider (ASP). The startup offers a comprehensive suite of technological solutions tailored specifically for cooperative banks, including core banking, mobile banking services, UPI NPCI switches, and BBPS switches.
Mission and Future Plans
Amit Kapoor, co-founder of Onestack, stated, “Our mission is to transform each Bharat bank into a neo-bank.” With the freshly secured funding, Onestack plans to expand its services in Southern and Eastern India, onboarding over 200 more banks to its platform and implementing core banking solutions in more than 50 institutions. This strategic expansion aims to enhance banking accessibility and services for over 35 crore Indians within the next 18 months.
Empowering Cooperative Banks with SaaS Solutions
Cooperative banks play a crucial role in serving approximately 50% of India’s banking population, yet they have historically lagged in digital adoption. Onestack bridges this gap by providing Software as a Service (SaaS) solutions that empower these banks to increase their CASA deposits, offer diverse credit facilities, and integrate insurance products effectively.
Current Reach and Accessibility
Currently, Onestack supports over 200 cooperative banks, including seven of the 34 cooperative banks in India. Its platform reaches a broad clientele base, affecting around 35 crore customers and six crore MSMEs. The UPI and BBPS switches enable partner banks to issue their own UPI identifiers, allowing them to manage Bharat Billpay transactions independently, thus reducing reliance on third-party fintech companies.
Investor Insights
Dr. Apoorva Ranjan Sharma, a venture capital director at Catalysts, commented on the unique positioning of Onestack, stating, “Their role as a complete catalyst for cooperative banks aligns with our vision for democratizing access to banking infrastructure.” Similarly, Sandeep Chawda from Pentathlon Ventures emphasized the potential of the cooperative banking sector, noting that it serves over 230 million people but has significant opportunities for digitization, highlighting Onestack’s role in transforming this landscape.