LegalPay startup launches credit line for firms to settle lawsuits

LegalPay, India’s first litigation funder and legal solutions provider, has announced the launch of a zero-interest credit line for enterprises, start-ups, individual business owners, and freelancers to settle legal disputes while preserving their working capital.

The start-up aims to disburse ₹200 crore in 2024 through its own NBFC Padmalaya Finserve along with other partner NBFCs.

LegalPay

Named Quick Settle, this innovative structured financing is designed to streamline the resolution of legal disputes with a flexible 6–12-month repayment plan, enabling parties to resolve conflicts without depleting their working capital.

Quick Settle aims to facilitate amicable dispute resolution by enabling parties involved in disputes to settle claims without impacting their working capital through a zero-interest credit line offered to the defendants with a flexible 6–12-month repayment cycle.

“Our vision is to bridge the gap between legal disputes and swift resolutions,” says Kundan Shahi, Founder and CEO of LegalPay.

“Quick Settle is not just a financial product. It catalyses change, fostering a culture of collaboration and resolution. By allowing defendants to manage their working capital efficiently through a zero-interest repayment cycle, we aim to foster a more conducive environment for businesses to thrive. This structured financing option enables defendants to settle claims seamlessly, alleviating the stress of legal battles without compromising their working capital,” he adds.

The start-up expects Quick Settle to disrupt innovation in legal finance, specifically tailored to improve the efficiency of the Indian judicial system, which is currently burdened with an overwhelming backlog of 6.1 million cases in the country’s 25 high courts.

By offering defendants manageable repayment options and claimants immediate settlement funds, Quick Settle aims to streamline the judicial process and foster a culture of amicable resolutions.

Founded in 2019, LegalPay has funded over 44,000 commercial cases and underwritten a staggering 92,000 cases nationwide. With Quick Settle, LegalPay aims to further disrupt a potential $200 billion market by bringing financial relief to businesses and having a positive social impact by expediting dispute settlements.