Kundan Shahi, founder and CEO of LegalPay, said, “The fintech firm democratizes investments through extensive use of technology and data. We want to make the use of alternative investments mainstream for retail Indian investors like the ultra-rich does. We have a unique ability to engage in product innovation consistently and set benchmarks for wealth generation in India.”
Interim Finance under IBC, 2016 is short-term super-secure financing that allows an insolvent company to remain operational while undergoing the Corporate Insolvency Resolution Process (CIRP).
LegalPay targets mid-market companies, including MSMEs, undergoing insolvencies, requiring Rs10 lakh – Rs5 crore. It competes with restructuring firms such as Edelweiss, KKR, Eight capital, which generally focus on high-ticket transactions within insolvency.
The New Delhi-based company said alternative investment in legal and debt asset classes does not correlate with capital markets and provides over 20-30% pre-tax IRRs of monthly disbursements. Interim finance as an asset class has a short investment cycle and has a natural realization event. The start-up boasts of enabling more than 1000 investors through its platform.
It is backed by venture capital firms such as 9Unicorns and LetsVenture and marquee angels, including Ashwini Kakkar, ex-chair
via.com, and Ambarish Gupta ex-founder of Knowlarity, among others. LegalPay regularly launches alternative-investment asset class options based on different investment thesis and gives varied investment options to Indian investors.
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In August,
ET reported that LegalPay was set to launch India’s first third-party litigation funding platform for small retail investors as an alternative investment asset class.
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