LegalPay, a tech-focused start-up that invests in commercial litigations and provides interim finance, has closed fresh financing of an undisclosed amount to Yashomati Hospitals Private Limited.
Interim finance is short-term lending for 6 to 12 months granted to companies undergoing insolvency.
This is used to pay operational costs of immediate needs such as payments to professionals, workers, security personnel etc. The main objective of grant of interim finance is to keep the companies under insolvency running under the legal backing and safeguards provided by the Insolvency and Bankruptcy Code, 2016.
Ravindra Beleyur, Resolution Professional for Yashomati Hospitals, said, “I and my team thank LegalPay Team for a very responsive approach. We never expected or thought that the term sheet could be finalised by any interim finance provider in less than 12 days from the initial e-mail. This is the level of quick response needed for any interim finance for any CIRP.”
LegalPay targets mid-market companies including MSMEs undergoing insolvencies in which the requirement of interim finance ranges from ₹10 lakhs to ₹5 crores.