Digital documentation platform Leegality has raised $5 million (around Rs 40 crore) in a Series A funding round from existing investors IIFL Fintech Fund and Mumbai Angels.
The platform plans to use the funds to accelerate customer acquisition, invest in product development and enhance the customer experience.
Founded in 2016 by Prakhar Agrawal, Sapan Parekh and Shivam Singla, Leegality enables businesses to digitally transform their documents. The company claims that over 1,500 Indian businesses use its services to digitise their document logistics.
Since 2020, it has grown its quarterly revenue by over 13x and its employee strength by 7x, while also being cash flow positive, the company said in a statement.
“Digitization is a major priority of all major BFSI (banking, financial services and insurance) companies today. Leegality is the first major early-stage investment into a legal-fintech company in India,” said Mehekka Oberoi, fund manager, IIFL Fintech Fund.
“Digitizing documentation in a legally compliant way is a hard problem, especially in regulated industries. From its inception, Leegality has been innovating to accelerate document logistics in a fast and compliant way,” said Nandini Mansinghka, CEO of Mumbai Angels Network.
In 2019, the company raised an undisclosed amount from Mumbai Angels Network, Chandigarh Angels, and other high-net-worth individuals.
Leegality further said that the scope for the space has increased significantly in the last year, especially with the Reserve Bank of India’s digital lending guidelines and new IT Act amendment coming into the picture.
The new lending guidelines impose new digital paperwork requirements for banks and non-banking finance companies while the IT act amendment allows digitization of immovable property contracts and power of attorneys.