New Delhi-based litigation financing startup LegalPay said Monday it has floated a $3 million (Rs 24.8 crore) fund to finance sports disputes. The fund has a tenure of four years and no limit on the ticket size.
The fund aims to protect athletes’ rights, provide them representation and resolve sports disputes involving endorsement issues, and broadcasting rights among other disputes in this field. It will also provide the athletes with embedded finance services for representation and general legal advice, the company said in a statement.
The fund aims to facilitate the resolution of disputes by eliminating the initial legal expenses for athletes and by working on a non-recourse basis.
“LegalPay has launched this fund to provide athlete representation, and legal advice as well as help them with dispute resolution. This fund will be used in an all-encompassing manner to cover all kinds of disputes in this sector,” said Kundan Shahi, chief executive officer, LegalPay.
This is the second domain-specific fund floated by LegalPay. In December last year, the company had set up a $2-million fund to invest in legal-tech startups.
Founded in 2019 by Shahi, LegalPay provides funds to corporate borrowers who need interim finance during insolvency. This amount ranges from Rs 30 lakh to Rs 50 crore and covers the legal expenses for contractual disputes, commercial disputes, founder-investor disputes and term-sheet disputes across sectors.
As per the company, it manages Rs 2,500 crore in claims under management and aims to add Rs 5,000 crore in CY23. In February this year, LegalPay completed the exits from its Rs 4.13 crore litigation financing fund it had started in 2021, clocking an internal rate of return (IRR) of 27%.
