LegalPay Announces The Exit Of Its First Litigation Financing Fund

New Delhi-based LegalPay has announced the full exit of its litigation financing fund that it had started in August 2021. The Company funded late-stage commercial and arbitration litigations across India through this fund.

According to a company statement, the fund delivered 27 per cent IRR (internal rate of return) over the tenure of two years. 

Founded in 2019 by Kundan Shahi, LegalPay is known to finance disputes across sectors like logistics, SaaS (software-as-a-service), EPC, and financial services. In a statement, it has claimed to use an in-house proprietary technology, which uses decision trees and scores algorithms to screen and fund commercial litigations under its leadership team. 

After announcing the exit of the fund, it has added that the investors can now diversify their portfolio on LegalPay’s platform and enjoy benefits. They can invest in interim financing bonds on the company’s website. These bonds are fixed-income instruments to finance the expenses of companies undergoing the Corporate Insolvency Resolution Process (CIRP) and are linked to an individual’s demat account.

Talking about the development, Kundan Shahi, the CEO of LegalPay said, "We generated such high IRRs on our commercial disputes litigation financing fund while demonstrating our expertise and strength of our technology infrastructure and are committed to solve the problem of legal financing and make products that have a necessity for businesses, regardless of their financial prowess.”

Last Year, the company launched a fund called Justice and Inclusion (JAI) with the intention to invest in India’s emerging legal-tech start-up ecosystem. It also created an investment committee to run the fund swiftly.