Delhi NCR-based LegalPay, legal and insolvency financier, has launched equity fund Justice and Inclusion (JAI) Fund. The approximately $2 million fund would invest in emerging LegalTech companies and start-ups working towards financial inclusion.
The fund's vision is to promote robust technology development in the current legal framework and speed up the legal processes through innovative legal products and solutions.
Founded by Kundan Shahi, LegalPay is a tech-focused litigation finance platform that democratises investment in alternative-investment products in the legal domain, including insolvency financing and litigation funding. The New Delhi-based fintech start-up specialises in asset-backed fixed-income and legal financing products with lucrative IRRs ranging from 18 per cent to 30 per cent.
On the launch of JAI fund, Shahi said, "Through this fund, LegalPay will invest Rs. 25 lakhs to Rs 50 lakhs each in over 30 start-ups in the next two years. We have observed the inability of start-ups that work for society to attract substantial capital to solve legal and socially inclusive problems. The fund aims to solve this by enabling such businesses to leverage our network and technological capabilities that we have developed over the last few years."
LegalPay has created an investment committee chaired by entrepreneur-turned-investor Ashwini Kakkar to enable an impartial funding mechanism. The committee also comprises Kundan Shahi, Founder and CEO of LegalPay, Kashish Grover, COO of LegalPay, and Ojasvi Babbar, CEO of Amity Incubation Centre.
"With the launch of the JAI Fund, LegalPay will be contributing enormously towards the development of the legal framework and reducing pressure on the judiciary through innovative legal products," Kakkar said.