New Delhi: LegalPay, India’s first and most prominent third-party litigation funding platform, announced its second successful exit in the interim finance segment last year with 23% IRR (internal rate of returns).
The interim financier based in Delhi-NCR has successfully exited its investment in SARE Gurugram Pvt Limited (Sare Gurugram) within 11 months. In August of the previous year, the financier had provided undisclosed interim finance to the debt-laden real estate company.
Interim finance is short-term lending granted to debt-ridden companies undergoing the corporate insolvency resolution process (CIRP).
Sare Gurugram, the unit of Sare Homes, had defaulted on dues to creditors for constructing a township on the outskirts of Delhi.
SARE Gurugram was admitted under Corporate Insolvency Resolution Process (CIRP) in March 2021 following a petition filed by Asset Care and Reconstruction Enterprises Limited. In April of this year, the National Company Law Tribunal (NCLT) approved a debt resolution plan to revive SARE Gurugram Private Limited in the NCR region. The project was proposed by a consortium of KGK Realty (India) Private Limited and Dhoot Infrastructure Projects Ltd.
Commenting on the exit, Kundan Shahi, Founder and CEO of LegalPay, said, “This successful resolution of SARE Gurugram underlines LegalPay’s commitment to providing innovative financial solutions that not only revive such businesses under insolvency but also contribute to the growth and development of the legal & insolvency industry.”
“We are grateful for the trust and collaboration of all stakeholders involved, and we remain dedicated to driving positive change and creating a thriving ecosystem for all,” he added.
LegalPay’s ability to deliver exceptional returns while safeguarding the corporate debtor’s interest underscores the company’s meticulous due diligence, comprehensive risk assessment, and strategic decision-making.
Founded by Kundan Shahi in 2019, LegalPay is a leading player in the insolvency financing domain & India’s largest provider of litigation financing. It consistently navigates the complexities of the legal financing landscape to generate impressive results for its investors and help such companies maximize their asset value.
Backed by 9Unicorns, Ambarish Gupta and well-known entrepreneur-turned-investor and global philanthropist Ashwini Kakkar, LegalPay operates on a ‘No Win No fee model’, which means that parties are only required to pay upon successful realization of the claim amount.
The company currently manages over ₹ 2,500 crores in claims under management through its AI and technology-enabled platform and expects to raise it to ₹ 5,000 crores in CY 2024.
Its first interim finance exit was from Yashomati Hospitals in February last year.
