Litigation funding startups eyeing arbitration and insolvency resolution cases
insolvency resolution process (CIRP) of bankrupt companies to providing financial support to fight arbitration suits or even helping companies find sector expert lawyers for fighting costly disputes, a clutch of litigation funding startups are offering a range of services in the third-party funding market in India.
Startups such as LegalPay, LitiCap, LegalFund and FightRight are helping companies fund their costly disputes, focusing on sectors including infrastructure, real estate, logistics, media entertainment and manufacturing.
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Offering CollegeCourseWebsiteIndian School of BusinessProfessional Certificate in Product ManagementVisitIndian School of BusinessISB Product ManagementVisitMIT xPROMIT Technology Leadership and InnovationVisit“We are funding largely the plaintiff side, who want to recover their money, but now we have also started to fund defendants in certain cases,” said Kundan Shahi, CEO, LegalPay. “We are expecting a maximum timeline of 36 months to recover our investments and an average IRR (internal rate of return) of 22-27%, with an average return of 12-15%, on a case-to-case basis.”
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Gurgaon-based third-party litigation startup LegalPay aims to disburse Rs 200 crore in 2024 through its own non-banking finance company (NBFC), Padmalaya Finserve, along with other partner NBFCs. The startup has also funded the CIRP for companies including Lavasa Corporation, Bengaluru-based Yashomati Hospitals and Mumbai-based real estate firm Wadhwa Buildcon.
