LegalPay has announced plans to deploy Rs 100 crore over the next 18 months to significantly expand its litigation finance operations across India, as third-party funding gains traction in the country’s legal ecosystem. The company intends to invest the capital in 20–30 carefully evaluated commercial and insolvency-related cases, with individual funding commitments ranging from Rs 2 crore to Rs 5 crore.
India’s judicial system is currently grappling with a backlog of more than five crore pending cases, many of which stretch on for years. During these extended timelines, escalating legal costs often compel individuals and businesses to settle prematurely or abandon even strong claims due to financial constraints. LegalPay’s expansion is designed to address this imbalance by enabling claimants to pursue cases based on legal merit rather than financial endurance.
LegalPay provides structured, non-recourse litigation funding to claimants and law firms, covering legal expenses without requiring upfront payments. Repayment is linked solely to successful outcomes, allowing claimants to manage downside risk while preserving capital and business focus. According to founder Kundan Shahi, the core challenge in Indian litigation is not weak legal claims but the inability of parties to sustain long and expensive proceedings. By removing financial pressure, LegalPay aims to ensure that viable claims are not compromised due to lack of resources.
The new capital will primarily be directed toward commercial disputes and insolvency matters, where lengthy resolution processes and high costs disproportionately impact creditors and businesses. Since the implementation of the Insolvency and Bankruptcy Code, admitted cases have involved claims running into several lakh crore rupees, underscoring both the scale of disputes and the financial stress faced by stakeholders.
LegalPay follows a selective and disciplined investment approach, subjecting each case to rigorous legal and financial diligence, including assessment of merits, enforceability, jurisdiction, timelines, and recovery potential. Only a small proportion of evaluated cases receive funding, ensuring prudent deployment of capital.
With Indian businesses estimated to spend over Rs 60,000 crore annually on legal and regulatory matters, litigation finance is increasingly being viewed as a strategic risk-management tool. Through this planned expansion, LegalPay aims to contribute to a legal environment where disputes are pursued and resolved on merit, rather than being constrained by financial limitations.
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