LegalPay Acquires Minority Stake in a Gujarat Based NBFC
LegalPay, a third-party litigation funding startup, has acquired a strategic minority stake in Padmalaya Finserve, a Gujarat-based non-banking finance company (NBFC).
The NBFC intends to lend approximately Rs 1,000 crore to companies undergoing the Corporate Insolvency Resolution Process for legal expenses and interim financing (CIRP).
Padmalaya Finserve is owned by Goldi Solar, a Surat-based solar manufacturing company supported by the Dholakiya family-owned SRK Group.
“This strategic equity acquisition in Padmalaya will help us go a long way in increasing our footprint in the legal, financial space,” said Kundan Shahi, chief executive of LegalPay, in a release. “This will help us bring more innovative products catering to the legal expense market.”
LegalPay, which was founded in 2020, is the country's first litigation funding platform. In the legal and insolvency markets, it offers embedded financing.
“This is a one-of-a-kind partnership with the vision of revolutionizing transactions in the legal and insolvency industry,” said Ishver Dholakiya, founder of Goldi Solar. “LegalPay as a partner brings their sector expertise and robust tech infrastructure necessary for establishing a strong dominance in the sector.”
Goldi Solar, based in Surat, manufactures solar panels and offers EPC services.
According to the most recent data from the Insolvency and Bankruptcy Board of India (IBBI), 5,893 companies were admitted under the CIRP as of September 30. 3,946 of these have been completed. Furthermore, the data indicates that of the CIRPs that were closed, corporate debtor companies were rescued in 2,139 cases.