LegalPay – The third-party litigation funding startup has revealed that between June 2021 to May 2022, it has received over 1,400 proposals for funding disputes for various parties, from across the sectors.
Sectors such as infrastructure, microfinance, fintech, logistic, technology and real estate are increasingly opting the option of third-party funding in litigation and dispute in India.
The third-party litigation funding startup LegalPay, in its recent white paper, has mentioned that between June 2021 to May 2022, it has received over 1,400 proposals for funding disputes for various parties, from across the sectors. However, it has accepted merely 138 cases or 10% only where the chances of winning the cases or recovery are higher.
“Out of 1,263 cases that LegalPay has denied funding to between June 2021 to May 2022, almost 90% (1,129 cases) of the time claimants and their general counsels have not pursued such cases before the court of law,” said the LegalPay in its white paper. “Consequently, in 812 cases, the claimants have completely written off their claim being denied funding by LegalPay. In the rest of 317 cases, the claimants are reconsidering their claims, along with other ancillary considerations.”
Kundan Shahi, Chief Executive of LegalPay said, the firm’s underwriting process gives an insight to the claimant whether to pursue the case further or not. “The underwriting also takes into consideration the creditworthiness of the defendant, which helps funders and claimants to evaluate the ability to pay an award or recovery,” said Shahi. “Such insight provides a level of validation of claims to the claimant with respect to the merits of the case, the financial viability of the defendant, and other operational challenges,” he adds. New Delhi-based third-party litigation finance platform LegalPay helps entities ease the financial burden of litigation cases such as shareholder and Intellectual Property Rights related disputes, domestic and international arbitrations, and other time-bound cases. It has also launched the country’s first third-party litigation funding platform for small retail investors as an alternative investment asset class.
