The purchase comes at a time when the regulatory technology space is seeing rising interest from venture capital (VC) firms. Earlier this year, for instance, compliance tech startup Zango AI raised $4.8 million in a funding round led by Nexus Venture Partners, as reported by ET in July.
IIFL Fintech Fund had first invested in Leegality in 2022.
“IIFL Fintech Fund has reinforced its conviction in Leegality by doubling down on its investment through its Series II fund, acquiring an additional stake via a secondary transaction,” said a spokesperson for IIFL Fintech Fund.
Founded in 2016 by Prakhar Agrawal, Sapan Parekh, and Shivam Singla, Leegality is a digital document workflow startup focussed on helping enterprises digitise paper-heavy processes.
The company enables end-to-end digital document logistics and offers application programming interfaces (APIs) that support e-signatures across multiple technology stacks, including BharatSign, National E-Governance Services Limited (NeSL), and BharatStamp.
The startup further provides signer verification, automated verification workflows, document tracking, and security features, along with client-specific pricing models. Its portfolio is structured across three plans tailored for individuals, businesses, and enterprises.
According to Tracxn, Leegality has raised a total of $6.63 million across three rounds, including two seed rounds and a $5 million Series A, led by existing investor IIFL Fintech Fund with participation from Mumbai Angels.
Following the rollout of the Digital Personal Data Protection (DPDP) Act and its rising acceptance, Leegality has positioned itself as an early mover in DPDP adoption. Recently, the company introduced Consentin, a product aimed at enabling enterprises to manage end-to-end DPDP compliance.
Consentin has seen traction, with more than 10 implementations underway across PSU and private sector banks, non-banking finance companies (NBFCs), and manufacturing firms.
“While the timeline may appear distant for smaller organisations, large enterprises are already discovering that it is barely adequate to design, implement, and operationalise robust guardrails for data protection and privacy in a paperless, DPDP-compliant world,” said Sapan Parekh, cofounder Leegality.
In January, IIFL Fintech Fund closed its second fund, having raised Rs 200 crore from domestic family offices and high net worth individuals (HNIs).
