Insolvency financier LegalPay launches first-of-its-kind ‘Justice and Inclusion Fund’ for legal-tech start-ups

LegalPay, which is the country’s largest legal and insolvency financier, has launched a first-of-its-kind equity fund -- Justice and Inclusion (JAI) Fund that would invest in emerging legal-tech companies and start-ups working towards financial inclusion. 

The fund with a corpus of $2 million aims to promote robust technology development in the current legal framework and speed up the legal processes through innovative legal products and solutions. 

The Delhi-based start-up has created an investment committee headed by well-known entrepreneur-turned-investor and global philanthropist Ashwini Kakkar to design an impartial funding mechanism.  

Further, the committee also comprises of Kundan Shahi, Founder and CEO, LegalPay; Kashish Grover, COO, LegalPay, and Ojasvi Babbar, CEO, Amity Incubation Centre. 

The fund's anchor lead is seasoned investor and marquee entrepreneur, Ambarish Gupta, Founder of Basis Vectors and ex-founder of Knowlarity.  

Gupta believes that the JAI Fund would institutionalise capital and promote the development of the ecosystem in the legal-tech market by budding entrepreneurs who are solving problems in the legal market through innovative technology. 

Founded by Shahi, LegalPay is a tech-focused litigation finance platform that democratises investment in alternative investment products in the legal domain, including insolvency financing and litigation funding. 

The start-up specialises in asset-backed fixed-income and legal financing products with lucrative IRRs ranging from 18 per cent to 30 per cent. 

“Legal innovation is often neglected in the sector, leading to the slow progress of legal innovation in India. Through this fund, LegalPay will invest Rs 25 lakh to Rs 50 lakh each in over 30 start-ups in the next two years,” said Shahi. 

“We have observed the inability of start-ups that work for society to attract substantial capital to solve legal and socially inclusive problems. The fund aims to solve this by enabling such businesses to leverage our network and technological capabilities that we have developed over the last few years,” he added. 

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