The Delhi High Court fined LawSikho ₹1 lakh for filing a defamation case against four people who criticized its law courses on X (Twitter).

LawSikho claimed the tweets could harm its business and affect its stock value. 

The defendants argued their comments were fair opinions.

The court noted that Lawsikho did not approach the court with clean hands and ruled that social media posts may be disparaging but cannot be defamatory since it is a casual medium. 

Since LawSikho didn’t follow the rules under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, the court dismissed the petition.

Sharan Hegde's 1% Club became the first finfluencer-led company to obtain SEBI’s Registered Investment Advisor (RIA) licence, allowing it to provide regulated financial advice.

This milestone comes despite SEBI's recent circular on January 29, which restricts stock-market educators from referencing stock prices less than three months old and effectively prohibits discussions on current market prices.

Managing ₹1,000 crore in assets, the company aims to bridge the gap in financial planning services in India, where demand far exceeds supply.

Additionally, the firm is launching educational programmes on tax planning, crypto, and stock market trading, including India’s first physical stock market institute, the Bombay Trading School.

Paxton, an Oregon-based legal tech startup, has secured $22 million in Series A funding led by Unusual Ventures, with participation from Kyber Knight, 25Madison, and Wisconsin Valley Ventures.

Founded in 2023 by CEO Tanguy Chau and CTO Michael Ulin, Paxton's AI-driven platform automates legal research, drafting, and real-time updates.

The company has seen rapid growth, with a 14x increase in monthly recurring revenue and an 8x rise in active customers in nine months.

The new funding will fuel technology expansion and team growth, aiming to make advanced legal tools accessible to firms of all sizes.

In a landmark collaboration, NLU Delhi has signed an MoU with Counsello AI to develop AI-powered legal and regulatory solutions, advancing AI applications in legal research, drafting, and regulatory compliance.

As part of its legal-tech incubation initiative, NLU Delhi has also established the NLU Delhi Foundation, a Section 8 company and the Centre for Innovation, Incubation, and Entrepreneurship (CIIE).

Counsello AI is the first startup to be incubated under this initiative.

Additionally, NLU Delhi is launching "Nyayasutra," its own legal AI model trained on Indian case laws, offering precise legal insights.

This partnership aims to revolutionize legal technology and enhance access to justice in India.

The Union Budget 2025 announced a renewed ₹10,000 crore Fund of Funds (FoF) to support Indian startups, expanding its scope to include sectors like AI, robotics, and clean energy. 

The initial FoF launched in 2016 mobilized ₹91,000 crore in investments. Finance Minister Nirmala Sitharaman also extended the eligibility period for tax benefits under Section 80-IAC of the Income Tax Act by five years.

This allows startups incorporated until April 1, 2030, to avail of incentives like a three-year tax holiday and exemptions from capital gains tax. This move aims to provide crucial growth capital for early-stage and deep-tech ventures.

Startup incubator T-Hub (Sujit Jagirdar, Interim CEO) has introduced T-Edge, a program designed to provide expert advice on managing intellectual property (IP), as well as legal, financial, and procurement issues.

The goal is to assist startups in protecting their innovations and improving their business value through effective IP strategies.

At the Inaugural session, specialists talked about the processes for patents and trademarks, affordable IP protection options, and the difficulties encountered by AI-focused startups. They also examined global patent filing and enforcement challenges.

 T-Hub, in partnership with NALSAR, aims to raise awareness and provide entrepreneurs with the necessary resources for lasting success.

The Department for Promotion of Industry and Internal Trade (DPIIT) recently convened with more than 70 alternate investment funds (AIFs) to plan ways to enhance funding for startups, particularly in smaller cities. 

Through the Fund of Funds Scheme (FFS), a Rs 10,000 crore initiative, Sebi-registered AIFs receive support to invest in startups, with commitments surpassing Rs 1 lakh crore.

To date, over Rs 20,000 crore has been allocated by significant players such as Chiratae Ventures and Blume Ventures. 

DPIIT also encouraged corporations to partner with startups to address challenges, emphasizing opportunities for global integration and the positive effects of the abolished angel tax.

LegalPay, one of the top litigation finance firms in India, has been honored as the Best LegalTech Startup of the Year by Entrepreneur India during the Tech and Innovation Summit 2024. 

This recognition underscores LegalPay’s groundbreaking solutions, such as QuickSettle, which tackles payment delays by offering immediate funding to creditors and flexible repayment options for debtors. 

Established in 2019 by Kundan Shahi, LegalPay oversees more than USD 400 million in claims and promotes quicker dispute resolutions.

CEO Shahi highlighted their dedication to empowering businesses and transforming legal finance in India, thereby fostering growth and trust within the industry.

LegalKart, a legal tech startup based in Gurugram, has secured Rs 6.5 crore in its recent funding round, which was led by IIM Udaipur Incubation Centre and Aevitas Capital, among others.

Established in 2019 by Dr. Arvind Singhatiya, LegalKart utilizes AI to provide accessible legal services, which include multilingual consultations through audio and video calls, verification of property documents, and legal drafting.

The platform's goal is to make legal assistance affordable and efficient for individuals throughout India.

With a significant 453% increase in business topline over the past eight months, these funds will be used to promote growth, enhance AI capabilities, and expand services to tier II and III cities, addressing the lack of quality legal services in underserved regions.

Info Edge, through its subsidiary Startup Investments (Holdings) Ltd., plans to invest INR 4 Crores ($474K) in the legal tech company LegitQuest via convertible notes in two phases.

The initial investment of INR 2 Crores will be made within 30 days, with the remaining amount to follow within a year, subject to specific conditions. After the investment, Info Edge’s ownership stake in LegitQuest could rise to 27.98%, based on upcoming funding rounds.

LegitQuest was established in 2017 by Karan Kalia, Rohit Shukla, and Himanshu Puri, offering a generative AI legal assistant for legal professionals, with a user base of 300,000 and over 1,000 B2B clients.

The company's revenue for FY24 skyrocketed by 163% to INR 5.85 Crores, resulting in a profit of INR 38 lakhs. Through this investment, Info Edge aims to enhance its portfolio of GenAI investments.

YouTuber Devin Stone, known as Legal Eagle, initiated a class action lawsuit against PayPal on December 29th, claiming that its Honey extension unlawfully substitutes creators' affiliate links with its own.

The lawsuit, filed in the Northern District Court of California by Stone's Eagle Team LLP alongside other YouTubers, accuses PayPal of breaching California’s Unfair Competition Law and interfering with the business relationships of creators.

It is alleged that Honey alters affiliate cookies during pop-up windows, reaping commissions without delivering any advantages. The lawsuit challenges PayPal’s justification based on “last-click attribution” practices, labeling Honey’s conduct as misleading.

The plaintiffs are pursuing damages and a court order to cease these actions. PayPal has denied the claims and intends to mount a strong defense. A dedicated website has been created for affected creators to participate in the lawsuit.

Jhana.ai, a legal-tech startup established by Harvard alumni, has secured $1.6 million in a seed funding round spearheaded by Together Fund, co-founded by Girish Mathrubootham (Freshworks) and Manav Garg (Eka Software).

Other notable investors include Shyamal Anadkat from OpenAI, Kunal Shah from Cred, Razorpay founders Harshil Mathur and Shashank Kumar, along with angel investor Cory Levy.

Jhana offers AI-powered paralegal solutions designed to optimize legal research and document analysis, utilizing a unique database containing 15 million case laws and statutes.

Founded in 2022 by Em McGlone, Hemanth Bharatha Chakravarthy, and Benjamin Hoffner-Brodsky, the Bengaluru-based company plans to utilize the funding to improve its datasets, AI models, and personnel. With more than 800 beta users, Jhana is set on transforming the efficiency and accessibility of legal work.

LawSikho, an online legal education platform successfully conducted its small and medium enterprises' initial public offering (SME IPO) from January 19 to January 24, 2024 thereby becoming the first legal edtech company to become a Public Company on Indian Stock Market.

LawSikho is an education tech platform providing specialized courses in law, finance, AI, and other fields.

The company is promoted by Ramanuj Mukherjee and Abhyudaya Sunil Agarwal, currently holding a combined promoter stake of 92.27%.

The IPO generated notable interest among investors and premiered on the NSE SME platform on January 30, 2024. Shares began trading at ₹310, showing a remarkable 121.43% premium over the issue price.

Those who invested in the minimum lot of 1,000 shares gained a profit of ₹170,000 per lot.

The RBI amended the Foreign Exchange Management Regulations, 2024, aligning with DPIIT’s 2019 startup definition. This allows more startups to open and maintain foreign currency accounts.

Startup eligibility was previously limited to five years and INR 25 Cr turnover. The new rules extend this to ten years and INR 100 Cr.

The changes simplify forex processes for DPIIT-recognised startups, offering benefits like tax exemptions and reduced compliances.

Over 1.5 Lakh DPIIT-registered startups can now access improved forex rules to support growth and global transactions.