Litigaton Finance Startup Legalpay raises Seed Funding from 9Unicorns
LegalPay, a litigation funding startup based in New Delhi, has received an undisclosed seed investment from venture capital firm 9Unicorns.
Legalpay, Founded in 2019 is a tech focused B2B litigation finance company in India. The startup is a trusted financial partner for advocates and corporate.
It strive to mitigate or minimize legal, economic, reputational, and collection risks for all invested partners by implementing careful underwriting and case-selection processes, as well as rigorous portfolio construction and monitoring.
LetsVenture, an early-stage investor, and Ambarish Gupta, founder of the New York-based private equity fund Basis Vectors and Knowlarity, also participated in the financing.
LegalPay is India's first third-party litigation finance platform, assisting entities/businesses in alleviating the financial burden of litigation cases such as shareholder and intellectual property rights (IPR) disputes. It primarily focuses on late-stage cases or those that are nearing completion, with a financial requirement ranging from Rs 20 lakh to Rs 3.5 crore. Also, cases should have strong legal merit, a high-performing legal team, and clarity on the settlement timeline.
“The cases are financed through funds raised from large family offices and HNIs/ultra HNIs in the country. The investors in return can expect a minimum of 30% IRRs across stages and types of cases, which also means that the cases undergo a strict and detailed risk and underwriting process,” said the company in its release. “LegalPay charges a 2% management fee and a 20% carry for the transactions made on the platform.”
According to Kundan Shahi, chief executive officer of LegalPay, this funding is a validation of the growing interest in this asset class. “Litigation finance promotes lawsuits to be decided purely on their merits. Simultaneously, it is also creating an alternative investment asset class for Indian investors with an opportunity to realise significant returns through litigation finance,” said Shahi.
Last year, several litigation funds and advisers, including Australia's Omni Bridgeway, the United Kingdom's Innsworth Capital and Profile Investment, and the United Arab Emirates' Phoenix Advisors, along with Indian law firm Singularity Legal, established the Indian Association of Litigation Funders (IALF).
Legalpay, Founded in 2019 is a tech focused B2B litigation finance company in India. The startup is a trusted financial partner for advocates and corporate.
It strive to mitigate or minimize legal, economic, reputational, and collection risks for all invested partners by implementing careful underwriting and case-selection processes, as well as rigorous portfolio construction and monitoring.
LetsVenture, an early-stage investor, and Ambarish Gupta, founder of the New York-based private equity fund Basis Vectors and Knowlarity, also participated in the financing.
LegalPay is India's first third-party litigation finance platform, assisting entities/businesses in alleviating the financial burden of litigation cases such as shareholder and intellectual property rights (IPR) disputes. It primarily focuses on late-stage cases or those that are nearing completion, with a financial requirement ranging from Rs 20 lakh to Rs 3.5 crore. Also, cases should have strong legal merit, a high-performing legal team, and clarity on the settlement timeline.
“The cases are financed through funds raised from large family offices and HNIs/ultra HNIs in the country. The investors in return can expect a minimum of 30% IRRs across stages and types of cases, which also means that the cases undergo a strict and detailed risk and underwriting process,” said the company in its release. “LegalPay charges a 2% management fee and a 20% carry for the transactions made on the platform.”
According to Kundan Shahi, chief executive officer of LegalPay, this funding is a validation of the growing interest in this asset class. “Litigation finance promotes lawsuits to be decided purely on their merits. Simultaneously, it is also creating an alternative investment asset class for Indian investors with an opportunity to realise significant returns through litigation finance,” said Shahi.
Last year, several litigation funds and advisers, including Australia's Omni Bridgeway, the United Kingdom's Innsworth Capital and Profile Investment, and the United Arab Emirates' Phoenix Advisors, along with Indian law firm Singularity Legal, established the Indian Association of Litigation Funders (IALF).
