LegalPay, a third-party litigation funding platform, has launched an alternative investment product for retail investors. Investors can invest as little as ₹25,000 to get started.
LegalPay focuses on potential late-stage B2B commercial cases that are nearing closure and have a financial requirement of anything ranging from ₹20 lakh to ₹3.5 crore.
Special Purpose Vehicle
The company has created a Special Purpose Vehicle (SPV) to create a pool of six to twelve commercial cases to ensure diversification of investor’s capital. This SPV is designed to finance arbitrations (both domestic and international), medium and late-stage litigations, specialized forums and claim buyouts opportunities.
Founded by season investor Kundan Shahi in 2020, LegalPay helps entities/businesses ease the financial burden of litigation cases such as shareholder and IPR related disputes with the help of technology. The New Delhi-based start-up, is backed by venture capital firms such as 9Unicorns and LetsVenture and angel investors including Ashwini Kakkar, ex-chair Via.com, and Ambarish Gupta, ex-founder of Knowlarity, among others .
“LegalPay believes in the democratization of investment made via its platform by making it easier for even smaller retail investors to invest. Earlier, only the ultra-rich had access to this asset, but we are making it accessible to anyone and everyone. Anyone can invest with a starting ticket size of ₹25,000. Through our SPV, we intend to ensure that the investors’ money is safe and secure by providing diversification across a basked of lucrative cases,” said Kundan Shahi, Founder of LegalPay. “The investments from the pool are structured in such a manner that even if only 1 out of 6 cases is won, the invested capital for the investors will be secure,” Shahi said