Delhi-based legal-focused startup LegalPay has announced its exit from the litigation financing fund it had started in 2021, clocking an internal rate of return (IRR) of 27% from its investment.
The company funded late-stage commercial litigations and arbitration across India through this fund, which had a corpus of Rs 4.13 crore.
"We remain committed to solve the problem of legal financing and make such product a necessity for businesses.” said Kundan Shahi, founder and chief executive officer, LegalPay.
Founded in 2019 by Shahi, LegalPay provides funds to corporate debtors who need interim finance that ranges from Rs 30 lakh-50 crore.
It specializes in asset-backed fixed-income and legal financing products and claims to provide an internal rate of return (IRR) ranging from 18-30%. As per the company, it currently manages Rs 2,500 crore in claims under management and aims to add Rs 5,000 crore in CY23.
Last year, the startup announced the launch of launched a $2 million Justice and Inclusion (JAI) Fund to invest in legaltech companies and startups working towards financial inclusion.
In June 2022, LegalPay made its first successful exit from its interim finance investment to debt-laden Yashomati Hospitals which was admitted for insolvency in March 2021. The resolution plan submitted by Kauvery Medical Care was approved by the Bengaluru bench of the National Company Law Tribunal (NCLT) on 30 May 2022.
In May 2021, Legalpay, secured an undisclosed sum in a seed funding round led by 9Unicorns and saw participation by early-stage investment platform LetsVenture along with angel investors Ambarish Gupta, (Knowlarity).
