Helion Venture Fund I and Canaan Advisors Pvt Ltd have raised their holding in an existing portfolio firm UnitedLex, a Gurgaon-based legal process outsourcing firm. Sequoia also joined in buying part of the stake that was sold by co-founder Ajay Agrawal.
Although UnitedLex did not disclose details of the transaction, the three investors have acquired 18.1 per cent stake in UnitedLex BPO Pvt Ltd for a total consideration of $16.68 million (75.3 crore), according to a report in ET.
Two of the three venture capital firms are existing shareholders of UnitedLex. Helion originally invested in January 2007 and followed it up with a further investment in July 2008 when Canaan also joined in.
UnitedLex BPO, a legal process outsourcing company, offers intellectual property, contract management, litigation support and immigration support services. The firm also focuses on offshore solutions including process mapping, performance baselining and process re-engineering services.
Agrawal who served as a securities law expert in various firms during 1994-2006, struck out as an entrepreneur in October 2006 and co-founded UnitedLex in the legal process outsourcing and strategic legal technology space.
He was part of the leadership team that led the UnitedLex through a period of rapid growth and geographical expansion by developing a new range of technology-powered solutions in the domains of contracts management, patent analytics and trademark solutions and has several pending patents as an innovator.
For the year ended March, 2010, UnitedLex BPO had a total income of Rs 29 crore, with net loss of Rs 68 lakh, according to VCCedge, the financial research platform of VCCircle.
Agrawal who was serving as the Chief Solutions Officer, has resigned from the board of directors of the company, effective June 15, 2011 to pursue a new venture. His new venture will seek to provide a range of analytical tools and services in the areas of credit, operational and fraud risk enabling businesses in the global payment industry in early identification and substantial reduction of potential and on-going losses.
“The global challenge to manage payment-related risk and fraud is increasing and my focus for the future will be to bring together the best brains and technologies in offering a comprehensive solution,” said Agrawal.
UnitedLex has implemented a transition plan for the company that is in the best interests of its customers, employees and shareholders, the firm said on Monday. UnitedLex’s CEO, Daniel E. Reed said, “Ajay is a remarkable entrepreneur who has provided leadership and innovation which have contributed to UnitedLex’s success.”
Last November, UnitedLex had acquired US-based LawScribe Inc. for an undisclosed amount. LawScribe provides legal services for e-discovery and document review, intellectual property, corporate transactions, legal research and support.