Press Release

LegalPay announces the exit of its First Litigation Financing SPV, generating more than 27% returns

LegalPay, India’s largest legal financier, has announced the exit of its commercial litigation financing SPV (Special Purpose Vehicle), delivering 27% IRR over a tenure of less than 2 years. LegalPay currently manages INR 2,500 crores in claims under management and looks to add additional INR 5,000 crores in calendar year 2023.

LegalPay, India’s leading legal financier, 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.

Under the supervision of its experienced leadership team, LegalPay uses an in-house proprietary technology using decision trees and scoring algorithms to screen and fund these commercial litigations. Such above-par returns are a testament to the Company’s robust technology-based screening, sourcing, and diligence infrastructure.

LegalPay was founded in 2019 by Kundan Shahi with the aim of financing legal expenses. LegalPay is India’s first and largest litigation and interim finance provider. It is backed by investors such as 9Unicorns

LegalPay finances dispute across sectors such as logistics, EPC, Saas, and financial services. Businesses are using litigation financing as a way to offload the cost and risk by paying a portion of the recovery only in the case of a successful outcome. In addition to the capital infusion to the dispute, LegalPay provides massive intangible value such as strategic expertise and legal professional network.

“We are proud to have generated such a high IRRs on our commercial disputes litigation financing fund, while demonstrating our expertise and strength of our technology infrastructure,” said Kundan Shahi, CEO of LegalPay. “We remain committed to solve the problem of legal financing and make such product an absolute necessity for businesses, regardless of their financial prowess.”

LegalPay has established itself as a market leader in litigation finance, and its strong performance as demonstrated by its fund closure reinforces its position as a market leader. The fund’s high IRRs is a positive development for the company and its stakeholders, highlighting LegalPay’s commitment to delivering value to its customers and shareholders.

LegalPay has also provided similar exit to its investors through their Health Care SPV where investors were able to make 26%+ IRRs in less than 9 months.

Currently, investors can diversify their portfolio on LegalPay’s platform and enjoy such benefits. They can invest in Interim Financing Bonds on LegalPay’s website. These bonds are fixed-income instruments to finance the expenses of companies undergoing the Corporate Insolvency Resolution Process (CIRP) which are linked to an individual’s DEMAT account. These diversified bonds are live on the website with a minimum investment of Rs.10,000/- and provide attractive and high-yielding returns between 14-16% on your investments.

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