New Delhi [India], October 6 (ANI): Krasha Financial Services, a private market firm, is preparing to launch a dedicated litigation finance platform in the fourth quarter of FY2026-27, marking the firm's entry into legal finance.

The global litigation funding market is estimated at approximately US$29 billion in 2026 and is projected to grow to more than US$43 billion by 2031. India remains an early-stage market for litigation finance, despite the size of its underlying legal market. The country has more than 50 million pending cases.

Krasha sees an opportunity to bring more institutional private capital into financing large commercial claims where claim quality, recovery prospects and duration can be assessed.

Litigation finance has demonstrated strong historical returns in mature markets. Burford Capital, listed on the NYSE, has reported a 26% IRR on concluded cases over a 15-year period, reflecting the return potential of the asset class, driven by the successful resolution and monetisation of large commercial claims.

The proposed platform will focus on commercial and high-value disputes with a minimum claim value of US$10 million, with a target maximum duration of five years. Potential opportunities will be evaluated based on the underlying merits of the claim, enforceability, counterparty strength, expected recovery, jurisdiction and estimated time to resolution.

Krasha is also in advanced-stage discussions with a UK-based legal-finance company for a potential strategic partnership. The proposed partnership is expected to bring international legal-finance expertise, case-underwriting capabilities and access to global legal-finance networks to the proposed India platform.

The platform will focus on commercial litigation, arbitration, insolvency-related claims and enforcement proceedings, targeting opportunities where the underlying claim, recovery potential and path to resolution provide sufficient visibility for institutional capital.

"We see a clear opportunity to build a litigation finance platform around larger commercial claims in India. The combination of private capital, rigorous legal underwriting and a global legal-finance partnership gives us a strong starting point as we enter the segment," said Avdhesh Singh, CFO at Krasha.

The proposed platform will operate separately from Krasha's digital neo-financing platform focused on asset-backed structured finance transactions. Krasha is currently evaluating opportunities across real estate and private credit in the MMR and NCR markets, with a target deployment of approximately 1,200 crore in FY2026-27.

Krasha is also preparing its proposed Category-II Alternative Investment Fund, Prism Strategy, targeting approximately US$60-70 million, subject to regulatory approvals and investor participation.

The litigation finance platform is expected to be launched in Q4 FY2026-27, subject to completion of the proposed partnership, structuring and applicable regulatory requirements. (ANI)