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US-based Hedonova Hegde Fund invests in LegalPay’s Pre-Series A round

In the past, Hedonova has invested in trailblazing startups such as SpaceX, Swiggy, Robinhood and Flexport, among others.

New Delhi, February 02: LegalPay, India’s first and only tech-driven alternative-investments platform specializing in insolvency, legal and debt financing, within insolvency, has raised an undisclosed amount from US-based Hedge fund Hedonova. 

This investment extends LegalPay’s pre-Series A round in December last that was led by Venture Catalysts and Amity Technology Incubator.

Hedonova is an alternative-investment hedge fund that invests in multiple asset classes such as art, unicorn startups, wine, equipment finance, ligation finance, music, and a few more.

On the recent investment, Suman Banerjee, the Founder and Chief Investment Officer of Hedonova, said, “The Fed’s interest rate hikes coupled with frothy emerging market valuations are going to attract institutional capital back to the US, leading to underperforming equity markets. India’s high savings rate is rapidly being mobilized into financial assets, and alternative assets are gaining momentum. LegalPay’s team has the required professional experience, high strength of character, and the drive to capture the alternative investment market in India. We have invested in their pre-series A and plan to keep backing the team in follow-on rounds as well.”  

To this, LegalPay’s Founder & CEO Kundan Shahi added, “We appreciate the commendable strength and vision of Hedonova in international alternative investment space. The deep expertise that Hedonova brings to the table for massive over 12 asset classes is something we look forward to partnering with and growing together at an exponential pace. We are aggressively growing in the Indian market, and such strategic partnerships will not only fuel our growth at a faster pace but also provide investors with more opportunities to invest.”

Founded in 2020, LegalPay competes with restructuring giants such as Edelweiss, KKR, Eight Capital, which generally focus on high-ticket transactions.

LegalPay has so far launched two sector-based Interim Finance SPV—  real-estate focused Interim Finance SPV under IBC, 2016 with ticket size as small as INR 10,000 and healthcare-focused SPV that was subscribed 135% in less than 48 hours. 

Interim Finance is a short-term super-secure loan that allows an insolvent company to remain operational when undergoing the Corporate Insolvency Resolution Process (CIRP). It targets mid-market companies, including MSMEs undergoing insolvencies that require INR 10 Lakhs – INR 5 Crores.