[Funding alert] LegalPay raises additional capital, ventures into Interim Financing
Tech-based litigation platform LegalPay has raised an undisclosed funding round led by entrepreneur-turned-investor and former head of Thomas Cook, Ashwini Kakkar. 9Unicorns, an accelerator VC fund, also participated in the round.
The new round comes only a month after LegalPay secured an undisclosed seed funding round led by 9Unicorns, early-stage investment platform LetsVenture, and angel investors such as Ambarish Gupta, Founder of New York-based PE Fund Basis Vectors, and Knowlarity.
Founded in 2020 by seasoned investor Kundan Shahi, LegalPay is a third-party litigation finance platform that helps entities/businesses ease the financial burden of litigation cases such as shareholder and IPR-related disputes.
Kundan Shahi, CEO, LegalPay
With the fresh funds, the startup plans to expand its product and service offerings and has entered into a new form of financing called Interim Financing under IBC, 2016. The company has also on boarded Satinder Kapur, an arbitrator and partner at SKAA, as Advisor and Empaneled Lead, Dispute Resolution.
"With Interim Finance, LegalPay will use financing similar to debtor-in-possession to invest in super-priority loans," said Kundan, Founder, and CEO, Legal Pay.
LegalPay said it is leveraging technology to solve for the mid-market insolvency market for funding requirements that start as low as Rs 50 lakh. Such funding requirements are typically for short durations ranging from six to 18 months and are used for immediate needs such as payments to professionals, workers, security personnel, etc.
Anuj Golecha, Co-founder of 9Unicorns, said they see a huge market opportunity in a vastly untapped market in India, which is solving an important value proposition. "We see the sector heating up in the years to come. We were strongly convinced by the founder's vision and execution capabilities. We have shown this faith by participating in the additional round of funding and are excited to participate in the journey of this game-changing startup."