New Update
/smstreet/media/media_files/2026/01/19/legalpay-2026-01-19-11-29-02.png)
00:00/ 00:00
In a legal system where financial endurance often outweighs legal merit, LegalPay has announced plans to deploy ₹100 crore over the next 18 months to significantly scale its litigation finance operations across India.
The capital will be invested in 20–30 carefully selected, high-quality cases, with individual funding commitments ranging between ₹2 crore and ₹5 crore.
India’s courts currently face a backlog of over five crore pending cases, many of which extend over several years. During these prolonged timelines, legal expenses continue to escalate, forcing individuals and businesses to settle early or abandon strong claims simply because they cannot afford to pursue them to conclusion.
LegalPay’s expansion is aimed at addressing this structural imbalance. The company provides structured, non-recourse litigation funding to claimants and law firms, enabling them to pursue meritorious cases without bearing the burden of upfront legal costs. Funding is repayable only upon a successful outcome, allowing claimants to manage risk while preserving capital and operational focus.
“What we see repeatedly is not a lack of legal merit, but a lack of financial staying power. Strong claims are routinely diluted, delayed, or dropped altogether because litigation in India is long, expensive, and uncertain. When a case runs for five or seven years, the cost itself becomes a pressure tactic. Our objective is to remove that pressure. If a claim is legally sound and commercially viable, access to capital should not be the reason it fails,” said Kundan Shahi, Founder of LegalPay.
The capital will primarily target commercial disputes and insolvency-related matters, where prolonged timelines and high legal costs place disproportionate strain on creditors and businesses.
Since the introduction of the Insolvency and Bankruptcy Code, admitted cases have involved claims worth several lakh crore rupees, highlighting both the scale of disputes and the financial pressure faced by stakeholders navigating extended resolution processes.
LegalPay follows a disciplined and selective investment framework. Each case undergoes detailed legal and financial diligence, including assessment of merits, enforceability, jurisdiction, expected timelines, and recovery potential. Only a small fraction of reviewed matters receive funding, ensuring responsible capital deployment aligned with long-term outcomes.
With Indian businesses estimated to spend over ₹60,000 crore annually on legal and regulatory matters, litigation finance is increasingly emerging as a critical risk-management tool. Through this expansion, LegalPay aims to help build a legal ecosystem where disputes are pursued on merit not constrained by financial capacity.
/smstreet/media/agency_attachments/3LWGA69AjH55EG7xRGSA.png)
Follow Us