Top law firm partners defy risks to trade stability for starting up

“For years I have helped organizations shape and deploy compatible, effective technology products and features, and there is no better way to get the entrepreneurial bug,” said the first-generation lawyer. He named his company after the Japanese art of repairing broken pottery with gold-mixed lacquer, symbolizing transformation while preserving the old.

“The pandemic has made it clear that, collectively, we are no longer in Kansas,” he said, referring to the unusual situation in which technology adoption and regulation have exploded. “Having been involved in the TMT (technology, media and telecom) space for a decade, it was clear that it was time to leverage my domain expertise.”

Sundara is among at least 10 partners from the country’s leading law firms, including Cyril Amarchand, Trilegal and AZB & Partners, who have launched their own ventures in the past 12 months. This desire for independence creates a more competitive environment where new and specialized firms use their flexibility and lower costs to compete with established players.

Partners leaving to start their own companies is a cycle that repeats every few years. However, this time, the scale of the opportunity is even larger due to the growing economy and investments. However, the industry is also facing high attrition as firms poach high-profile partners ahead of the impending entry of their foreign counterparts. Clients are also strengthening their in-house legal teams, increasing the risk of new, independent firms.

“Leaving the security of an equity partnership is a significant financial risk,” says Bithika Anand, founder-chairman and managing director of Legal League Consulting (LLC), as lawyers give up a steady income. However, according to him, the financial rise is challenging.

“Costs are very low… profitability is much higher and so they take home what they earn,” Anand said, adding that lower overheads make the model highly profitable.

“The desire to be a founder or owner is a strong motivator. Disagreement over a firm’s internal policies, procedures, systems or the way things are done can push senior partners to leave and create their own environments,” Anand said. Once you become an equity partner, there is often no room for further advancement, he said.

Akshay Jeet Bhat, who co-founded First Princes Law in August after a two-decade partnership with Cyril Amarchand Mangaldas, said the new venture enables talented professionals to create a workplace where they can realize their true potential without the constraints of hierarchy.

There may be a different reason for this decision for Clarence Anthony, who left his equity partnership at Trilegal in 2024 and founded the technology-focused firm Clarence & Partners.

“Equity in a large firm may not offer the same growth potential as starting one’s own startup,” he said. “Is meeting a goal my top priority at a law firm? Or am I looking at other reasons to create value?”

Other lawyers leaving to start their own firms include Lavin Hirani, who left MDP Legal Advocates and Solicitors after a three-year stint to set up Hirani & Associates in April this year, Bar and Bench reported.

Vishak Abraham left Cyril Amarchand after 11 years to start Venture A Law in August, while Sumit Khadaria founded Fiscal Law Chambers after leaving Laxmikumaran and Sridharan Law Firm three years later.

Vyapak Desai, who has been working at Nishith Desai Associates for 20 years, established his own Vyapak Desai Law Chambers in August. Dhruv Janssen Sanghavi moved from Nishith Desai Associates to form Janssen-Sanghavi & Associates in June 2024.

Costs and competition

Many of the new boutique firms focus on sectors such as TMT (technology, media and telecom), competition, energy, ESG or disputes, filling a clear gap that larger firms cannot always address quickly or flexibly. Industry experts expect the rise of niche firms deeply involved in sectors such as renewable energy, fintech, start-ups and real estate over the next five years.

“Technology laws are constantly evolving, encouraging clients to leverage external, deep expertise to navigate this changing framework and support their in-house capabilities. This combined approach will ultimately benefit businesses and expert external advisors,” said Sundara.

According to him, customer expectations have improved. “Old approaches to providing legal advice are outdated. In-house counsel want quick, concise advice from senior practitioners that does not require further resolution before being presented to internal partners.”

The fragmentation of law firms has intensified competition in the legal market; because boutiques enjoy two main benefits: lower fees and direct partner-level service.

With minimal infrastructure costs, small firms can offer lower rates and direct attention to the founder, Anand said. “In contrast, in very large firms, clients may not have easy access to partners because junior lawyers are doing the work.”

Bhat also touched on what he’s learned after two decades working at a large firm: Customers now value “clarity of advice, commercial sensitivity and speed of execution” rather than just the size of the brand.

Some founders have taken advantage of the help of technology to manage time and reduce costs.

Anthony uses ‘Varina’, a specialized artificial intelligence (AI) tool, for tasks typically assigned to lower-level employees in law firms. “The company is eliminating the type of burn where people spend hours doing mundane tasks,” he said. “This allows the firm to charge clients for a disproportionate number of billable hours.”

India’s thriving business hubs are another factor that has led some to start out on their own by offering niche services.

“Most of the established setups were either located in Mumbai or focused on specific regions, with growing businesses, startups and individuals looking for accessible legal support,” said Sanjana Suri, founder of Dhan Legal & Co. in Pune. His company helps immigrant entrepreneurs and U.S.-based small and medium-sized businesses (SMBs) solve complex legal problems without paying high rates to an American law firm.

startup risk

For large law firms, partners are leaving to start their own ventures, further exacerbating the talent drain the legal profession has faced in the past year. They are trying to stop this turmoil.

Khaitan & Co. “The rise of boutiques is not a challenge but a significant opportunity,” says Amar Sinhji, managing director of Human Resources. He said large firms provide an advantage for clients seeking long-term strategic advice.

However, Sinhji acknowledged that the regulatory environment has intensified competition for talent.

He said Khaitan focuses on building long-term careers, not just short-term roles. “Retaining talent today goes far beyond compensation. It’s about creating a platform that offers purpose, meaningful opportunity and a clear path for professional growth.”

Boutique firms also face growth limitations, especially in handling large-scale corporate transactions, according to Anand. “There are a lot of founders who try for a few years and then end up rejoining a larger firm. Many are not that successful.”

In addition to this pressure, large companies have reduced their overall spending on outside firms by strengthening their in-house legal teams. While large corporate groups still outsource critical or large-scale matters, law firms are seeing less involvement as companies spend more on their internal teams, according to Anand.

Anthony predicts that the future may lie in generalist and specialist firms working together in a mutually beneficial relationship, describing this as an attractive alternative to the traditional all-in-one large firm model. Bhat envisions a hybrid model in which boutiques become the first port of call for clients seeking agility, while companies with larger legal budgets engage larger firms for scale-heavy issues and boutiques for speed.