Legalpay's new SPV for small investors betting on stressed healthcare cos

Investors can put in as little as Rs 10,000 to fund firms undergoing insolvency

Fintech LegalPay has launched an interim finance healthcare-focused fund for retail investors that grants them fractional ownership, for an investment amount as little as Rs 10,000 per opportunity, in asset-backed legal and debt financing asset classes.

A press release issued by LegalPay says that the fintech, India’s first and only alternative investments platform specialising in legal and debt financing opportunities, has launched a Special Purpose Vehicle (SPV) focused on the healthcare sector for retail investors wishing to invest and provide fractional super-secure financing to companies under insolvency that have substantial assets.

Under this SPV, retail investors can invest for as low as Rs 10,000 and diversify their investment portfolio just like the HNIs do, theh release added.

Interim Finance under IBC, 2016 is short-term super-secure financing that allows an insolvent company to remain operational while undergoing the Corporate Insolvency Resolution Process (CIRP). LegalPay targets mid-market companies, including MSMEs, that undergoing insolvencies, requiring amounts ranging from Rs 10 lakh to Rs 5 crore.

LegalPay competes with restructuring giants such as Edelweiss, KKR, Eight capital, which generally focus on big-ticket transactions within insolvency.

“LegalPay democratises investments through extensive use of technology and data. We want to make the use of alternative investments mainstream for retail Indian investors like the ultra-rich does. We have a unique ability to engage in product innovation consistently and set benchmarks for wealth generation in India.” said Kundan Shahi, Founder & CEO of LegalPay.

Shahi added that alternative investment in legal and debt asset classes does not correlate with capital markets and provides an impressive 20-30 per cent-plus pre-tax IRRs of monthly disbursements. Interim finance as an asset class has a short investment cycle and has a natural realisation event.

LegalPay is India’s first data-driven and tech-enabled alternative-investments platform helping investors modernise their portfolio with flexible and innovative legal and debt financing investment assets. The New Delhi-based start-up is backed by institutional investors such as 9Unicorns, LetsVenture, Venture Catalysts, and Amity Innovation Incubator. The start-up boasts of enabling 1000+ investors through its platform and is on the mission of making such asset classes available to everyone.

The New Delhi-based start-up is backed by venture capital firms such as 9Unicorns and Lets Venture and marquee angels, including Ashwini Kakkar, ex-chair via.com, and Ambarish Gupta ex-founder of Knowlarity, among others. LegalPay regularly launches alternative-investment asset class options based on different investments and give varied investment options to Indian investors.