Tuesday, June 25, 2024
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Litigation funding firm LegalPay launches credit line for small business owners to settle legal disputes 

LegalPay, a legal tech startup based in New Delhi, introduces a zero-interest credit line for businesses, startups, individual entrepreneurs, and freelancers. This initiative enables them to resolve legal disputes without affecting their working capital. 

The company aims to distribute approximately Rs 200 crore in 2024 through its non-banking finance company (NBFC), Padmalaya Finserve, and other collaborating NBFCs.

Named Quick Settle, this organized financing option is crafted to simplify the resolution of legal conflicts. It features a flexible 6–12-month repayment plan, allowing parties to settle disputes without depleting their working capital.

“Our vision is to bridge the gap between legal disputes and swift resolutions. By allowing defendants to manage their working capital efficiently through a zero-interest repayment cycle, we aim to foster a more conducive environment for businesses to thrive,” said Kundan Shahi, Founder and CEO of LegalPay. “This structured financing option enables defendants to settle claims seamlessly, alleviating the stress of legal battles without compromising their working capital.” 

Founded in 2019, LegalPay has funded more than 44,000 commercial cases and has underwritten an impressive 92,000 cases nationwide. Currently, the company is overseeing claims worth over Rs 2,800 crores.

The company concluded a Rs 12 crore interim financing bond in the previous year. This investment instrument, falling under the fixed income category, was introduced in January and boasted a coupon rate of 14%, compounding annually.

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