LegalPay Acquires Strategic Stake In Padmalaya Finserve

Litigation financing start-up LegalPay said it acquired a strategic stake in Padmalaya Finserve, India’s first legal and insolvency financing non-banking finance company (NBFC), to boost its footprint in the legal and financial space.

The strategic alliance will bring the expertise and resources of both organizations and provide innovative solutions to businesses for financing legal expenses, LegalPay said in a statement. The company didn’t disclose the deal value and the acquired stake in Padmalaya Finserve.

Padmalaya Finserve is owned by Goldi Solar, a Surat-based solar manufacturing business house, according to the statement.

LegalPay, India’s first litigation funding platform, said it plans to use the NBFC to further scale its closed-loop legal financing for businesses to pay for their legal expenses at ease without using debt or equity money.

The businesses can pay their legal costs using a credit line of up to 50 lakh rupees ($61,485) and consequently, the law firms get to expand their clinet base due to the flexible payment options, it added.

LegalPay, founded in 2020, has so far on-boarded more than 150 law firms and 1,000 businesses on its platform. The company expects to disburse 1,000 crore rupees by FY24.

(Note: $1 = 81.3213 Indian rupees)