UnitedLex, a legal process outsourcing company, has received $6 million in a Series B round led by Canaan Partners and joined by the existing investor Helion Venture Partners. UnitedLex’s Series A investment was done by Helion in 2007. Alok Mittal, Managing Director, Canaan partners, would join on the board of UnitedLex. Rahul Chandra, Investment Advisory Director, Helion Ventures, already represents the firm on the board.
The company will use the funds to expand the headcount from 250 currently to 1,000 by 2009 and also for the expansion of its global delivery network, besides setting up an e-delivery network. The company is also opening a second delivery center in Gurgaon later this quarter. Besides, UnitedLex will invest $2 million in building LexBase, its technology platform.
The company has a $10 million annual revenue run rate, up from just $4 million at the end of 2007. The company claims that its revenues are growing at by 5 to 10 per cent on a month-on-month basis and it’s expecting $22 million revenues by 2009. A 90 per cent of revenues of UnitedLex come from the U.S. clients.
Earlier, Sequoia Capital India has backed Pangea3, while there are angel backed companies like Mindcrest (Ganesh Natarajan), and JuriMatrix (Jerry Rao).
According to Forrester Inc., the global spending on legal services is in excess of $250 billion with US accounting for two thirds of this market. The emerging consensus amongst the leading industry analysts such as IDC, Forrester and Hildebrandt is that the offshored component of this $250 billion will reach about $3 billion by 2015 with India accounting for two third of the market, i.e. $2 billion. To achieve this growth, CRISIL estimates that the legal process outsourcing industry will have deployed over 66,000 lawyers and related professionals.
Anup Bhasin, Chief Operating Officer, UnitedLex told VC Circle that the opportunity is expanding especially now since there has been a spurt of subprime crisis related lawsuits filed which has led to a many legal firms going either bankrupt or out of business. Bhasin said they would look at acquiring them. “We are evaluating opportunities and exploring a few options as a few law firms especially after the sub prime are available cheap as most of them have gone bankrupt,” says Ajay Agrawal, Chief Solutions Officer, UnitedLex told VCC.
“We are not only a services company but also a technology company. We follow the dual approach of strategy/technology consulting and outsourcing unlike our peers. We stay across the lifecycle of the companies”, added Agrawal.