OneStack Raises INR 12.5 Cr from Shepherd’s Hill

OneStack, a fintech startup that builds banking and payments technology for cooperative banks has raised INR 12.5 crore from new investor Shepherd’s Hill and existing backers Pentathlon Ventures and AVNM Ventures. Including this round, it has raised more than INR 45 crore across four rounds. Earlier investors include 9Unicorns, growX Ventures, Stride Ventures, Samved VC, Silicon Road Ventures and Venture Catalysts. Shepherd’s Hill invested through its first private equity fund, launched in 2025.

The funds will go toward expansion across cooperative banks and non-banking financial companies (NBFCs) and product development in payments, core banking and regulatory compliance.

OneStack also said cooperative banks on 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. A bank can issue UPI IDs to its customers, sign up its own merchants and settle payments on its own rails.

The bank keeps the customer relationship, the transaction data and the merchant discount rate (MDR) and other payment revenue, instead of passing them to a larger intermediary bank.

Under the government’s new framework, most person-to-merchant UPI payments above INR 2,000 will carry a 0.40% MDR, capped at INR 300 per transaction. NPCI deferred the charge, originally due on October 15, until after Diwali, at a date to be notified.

“Cooperative banks have always had their communities’ trust, but on UPI they were disconnected from their own customers,” said Amit Kapoor, Founder and CEO, OneStack.