Revolutionising legal banking: How Cubictree is leveraging AI to disrupt India's legal tech cum debt recovery software market future

In 2009, over a casual conversation with friends from the legal industry, Hitesh Jirawla stumbled upon a revelation that would reshape the landscape of legal operations in India. Despite India’s burgeoning reputation as a global IT powerhouse, legal teams at major banks were still buried in physical diaries and Excel sheets, struggling to track decades of case histories. “If TCS and Infosys are creating cutting-edge software for the world, why can’t we build something to streamline our own legal processes?” Jirawla asked himself.

This question sparked the genesis of Cubictree, India’s first legal tech company. At a time when the idea of digitising legal banking operations seemed implausible, Jirawla embarked on a mission to disrupt a domain long resistant to change. “Law is entirely data-driven, yet there wasn’t even basic software to handle the work. That contradiction is what drove me to start Cubictree,” he recalls. 

Fifteen years later, Cubictree is a category creator in India’s legal tech industry, managing over $50 billion in accounts annually and transforming how banks tackle their legal challenges.

Transformative solutions reshaping legal banking

Cubictree's success stems from three core solutions that have transformed legal banking operations:

NPA legal and recovery management platform: The company's flagship product seamlessly integrates with core banking systems to automate the entire recovery process. The platform manages over 20 million NPA accounts worth $50 billion, handling everything from automatic notice generation, to managing complex legal processes eg: SARFAESI, IBC, ARBITRATION, Sec18, Cases Against Company, Tax etc on a single platform with direct integration and update from online court case tracking. What sets it apart is its ability to generate notices in multiple regional languages and process them at scale - currently handling one million notices monthly. The platform's integration with core banking software ensures real-time updates and auto-allocation based on sophisticated algorithms from head offices to branches. Cubictree Platform has successfully completed more than 100+ System integration across its clients.

One of Cubictree's standout achievements in NPA legal recovery includes a 20-day reduction in recovery time, a threefold increase in productivity, and a 99% reduction in the time spent on operational tasks. These efficiency gains have had a direct impact on financial institutions, significantly improving their recovery rates and reducing manual efforts.

Litigation discovery system: Housing India's largest litigation data lake with 4.5 billion records and adding a million daily, this system serves as an early warning mechanism for banks. The platform provides comprehensive, real-time litigation reports on prospective borrowers, helping financial institutions mitigate risks before they escalate. It's the only solution in India covering all segments of credit risk - from listed companies to proprietorships and individuals. The system's advanced analytics can search across multiple parameters including PAN, GST number, CIN, and address data, providing automated risk assessment without human intervention. "We've saved banks $1 million per year just by discovering litigation at early stages," Jirawla says.

Market leadership through innovation: Cubictree's position as India's largest legal tech company is reinforced by its deep understanding of the banking sector's complexities. The company has developed specialised legal language models trained on its massive data lake, enabling predictive analytics for recovery timelines and optimal recovery strategies. Their technical expertise extends to handling intricate banking processes - each legal action involves 36 configurable rules across four process layers, multiplied across products and regions. This granular approach allows banks to maintain regulatory compliance while adapting the system to their specific needs.

What truly distinguishes Cubictree is its implementation methodology. Understanding that digital transformation in banking impacts multiple layers of operations, it has developed a unique approach to help teams transition from legacy systems while maintaining operational continuity. This has resulted in a remarkable 95% customer retention rate and fostered deep relationships with over 100+ BFSI clients and overall 700 clients across multiple business segments in India.

Growth and market impact

Cubictree has achieved remarkable success, marked by an impressive 80% growth over the past four years. Its innovative platforms have processed over one billion legal recovery actions, showcasing its robust capability to handle complex operations. With over 20 million NPA accounts under management, collectively worth $50 Billion, the company has become a trusted partner for financial institutions seeking efficient recovery solutions. 

One of Cubictree's standout achievements is saving its clients $1 million annually by identifying litigation risks early through its advanced discovery systems. The platform has witnessed a staggering 13x increase in recovery actions since May 2021, reflecting its effectiveness and scalability. Its client portfolio boasts industry leaders like SBI, HDFC Bank, and the Kotak Mahindra Group, a testament to its credibility and impact.

Cubictree's reach extends beyond the BFSI sector, with a presence across diverse industries such as telecom, manufacturing, pharmaceuticals, oil and energy, media, and FMCG. This wide applicability underlines the versatility of its solutions. Backed by a strong and dedicated team of 170 professionals, the company operates from its headquarters in Mumbai, with core development teams in Pune and Noida, ensuring seamless delivery and innovation.

Future potential

According to Custom Market Insights (CMI), the legaltech market size was estimated at $ 9.8 Billion in 2022 and is expected to hit around $ 21.4 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 8.5% from 2023 to 2032. India's legaltech sector is growing particularly fast, with an anticipated CAGR of 10.8% through 2034, driven by increasing legal awareness and digital adoption. This growth trajectory aligns perfectly with Cubictree's expansion plans, as it aims to reach Rs 100 crore in revenue within three years through strategic expansion of their value-added services.

"We've built the core infrastructure," Jirawla explains. "Now we're adding utilities around it. We already have a pipeline of 20 utilities." 

In an industry where trust is paramount, Cubictree's combination of technical excellence, deep domain expertise, and customer-centric innovation has established them as not just a market leader, but a category creator in India's legal tech landscape.