LegalPay is a start-up company focused on third-party litigation finance and announced that it has successfully closed its first litigation fund. According to a LegalPay statement, Arbitration Focused SPV I, a small ticket special purpose vehicle (SPV) designed for upper retail investors, was launched last month and is now oversubscribed.
SPV I was launched to create a pool of 8-12 proceedings to ensure capital diversification while minimizing the risk of a small portion of the investment. The fund allows individual investors to invest in a single legal matter for as little as Rs 25,000.
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Meanwhile, the startup has also launched a second SPV that focuses on commercial disputes. Interestingly, investment opportunities are accompanied by a pre-commit flat cashback of Rs 1,000 per investment.
This venture focuses on B2B commercial disputes that offer accurate monetary value opportunities. Matters related to breach of contract, collection claims, partnership disputes, cross-border transaction disputes, and tax disputes are usually considered. In addition, it focuses on funding medium- and late-term proceedings in specialized forums.
These SPVs help diversify investors by investing in baskets of commercial cases that typically generate pre-tax IRRs above 20%. By the way, the entire investment process is digital and seamless, including signing investor documents, KYC, billing basket tracking, portfolio monitoring and analysis.
Founded by Kundan Shahi in 2020, the Delhi-based start-up is backed by venture capital firms such as 9 Unicorns and Lets Venture.
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Litigation Financing Startup LegalPay’s Virgin Fund Oversubscribes
Source link Litigation Financing Startup LegalPay’s Virgin Fund Oversubscribes