New Delhi, March 1: Legalpay, India’s first and only litigation and interim financier, has funded logistics startup LetsTransport to support the latter’s legal action against multiple defaulting clients, including Wow Express.
LegalPay has agreed to provide 3rd Party Litigation Funding to LetsTransport on a success fee basis from the recovery by LetsTransport for a portfolio of defaulting clients, including Wow Express.
LetsTransport had provided continuous logistics support to Wow Express since 2017 through various locations like Mumbai, Hyderabad and Chennai. The company has served a legal notice to Wow Express and its directors, Jayesh Kishor Kamat and Mazhar Latif Faruqi.
“Since the default, LetsTransport has tried to reach out to Wow Express on multiple occasions for amicable settlement of the disputes. However, there has been no response. It is unfortunate to see that Wow Express, being a reputed logistics service provider, has not been fulfilling its obligation to pay for the services availed by them. Hence LetsTransport has reached out to us to help them finance the legal actions against Wow Express,” said Kundan Shahi, Founder of LegalPay.
Due to Covid, there has been a significant rise in default by various companies where litigants like LetsTransport seek support from LegalPay in the form of portfolio litigation funding to recover their dues. Logistic companies like LetsTransport are reaching out to LegalPay to seek litigation finance to avoid burning capital in litigation and channelise it towards their operations and growth.
In consideration for providing support in litigation finance, it has been agreed that LegalPay will charge a minimal percentage from the actual realisations by LetsTransport. LegalPay expects the resolution within a few months.
LegalPay provides non-recourse funding in commercial legal claims in exchange for a share in the final recovery, implying that the litigant only has to pay upon a successful realisation of the claim. LegalPay is a VC-backed startup with support from prominent names such as 9 Unicorns, LetsVenture, VentureCatalysts and Amity Innovation Incubator.
LegalPay has also emerged as a significant player in providing interim finance to companies that have entered into insolvency under the Insolvency and Bankruptcy Code, 2016. This finance is provided at market competitive interest rates with structures suiting the company’s requirements.
