IIFL Fintech Fund purchases secondary shares in regtech startup Leegality for Rs 21 crore

IIFL Fintech Fund, backed by financial services group IIFL, has bought secondary shares worth Rs 21 crore in document infrastructure startup Leegality. The transaction comes amid growing investor interest in the regulatory and compliance technology (regtech) space.

IIFL Fintech Fund had first invested in Leegality in 2022 and has now increased its stake through its Series II fund. The fund said the move reflects its strong confidence in Leegality’s business and growth potential.

Founded in 2016 by Prakhar Agrawal, Sapan Parekh, and Shivam Singla, Leegality helps enterprises digitise paper-based processes. The startup offers end-to-end digital document workflows, including e-signatures, document verification, tracking, and security features. Its APIs support platforms such as BharatSign, NeSL, and BharatStamp.

According to Tracxn, Leegality has raised $6.63 million so far across seed and Series A rounds, with IIFL Fintech Fund being a key investor. The company serves individuals, businesses, and large enterprises through different pricing plans.

With the rollout of India’s Digital Personal Data Protection (DPDP) Act, Leegality has positioned itself as an early player in DPDP compliance. Recently, it launched Consentin, a product designed to help enterprises manage DPDP compliance. The product is already being implemented by banks, NBFCs, PSUs, and manufacturing companies.

Earlier this year, IIFL Fintech Fund closed its second fund of Rs 200 crore, raised from domestic family offices and high net worth individuals (HNIs).