Inside the new wave of lawyers breaking away to build their own firms

“I’ve helped entities shape and deploy compliant, impactful tech products and features for years –there’s no better way to be bitten by the entrepreneurial bug," said the first-generation lawyer. She named her firm after the Japanese art form of repairing broken pottery with gold-mixed lacquer, signifying transformation while preserving the old.

“The pandemic made it clear that we are, collectively, ‘not in Kansas anymore,’" she said, referring to the unfamiliar situation when technology adoption and regulation exploded. “Having been embedded in the TMT (tech, media and telecom) space for a decade, it was clear that it was time to harness my domain expertise."

Sundara is among at least 10 such lawyers from the nation’s top law firms, including Cyril Amarchand, Trilegal and AZB & Partners, to launch their own ventures in the past 12 months. This desire for independence is creating a more competitive environment where new, specialised firms use their flexibility and lower costs to compete with established players.

Partners leaving to start their own firms is a cycle that repeats every few years. But this time the scale of opportunity is even bigger, driven by a growing economy and investments. However, the industry is also facing elevated churn as firms poach high-profile partners ahead of the impending entry of foreign peers. Clients, too, are strengthening their own in-house legal teams, increasing the risk for new, independent firms.

“Leaving the security of an equity partnership is a significant financial risk," says Bithika Anand, founder-chairperson and managing director of Legal League Consulting (LLC), as lawyers are abandoning a steady income. Yet, according to her, the financial upside is compelling.

“The costs are very low... profitability is way higher and so they take home whatever they earn," Anand said, adding that the lower overheads make the model highly profitable.

“The desire to be a founder or owner is a powerful motivator. Disagreement with a firm's internal policies, procedures, systems or the way things work can push senior partners to leave and create their own environment," Anand said. After becoming an equity partner, she said, there is often no room for further advancement.

Akshay Jeet Bhat, who co-founded First Principles Law in August after one decade of partnership at Cyril Amarchand Mangaldas, said the new venture allowed them to create a workplace where talented professionals could realise their true potential without the constraints of hierarchy for the sake of it.

For Clarence Anthony, who left the equity partnership at Trilegal in 2024 to start the tech-enabled firm Clarence & Partners, the decision can be driven by a different reason.

“Equity in a large firm may not offer the same growth potential as building one's own enterprise," he said. “Is meeting a target in a law firm my top priority? Or am I looking at other reasons for value building?"

Other lawyers who left to start their own firms include Lavin Hirani, who quit MDP Legal Advocates and Solicitors after a three-year stint to found 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 started Fiscal Law Chambers after exiting Laxmikumaran and Sridharan Attorneys after three years.

Vyapak Desai, having worked at Nishith Desai Associates for 20 years, started his own Vyapak Desai Law Chambers in August as well. Dhruv Janssen Sanghavi moved from Nishith Desai Associates to start Janssen-Sanghavi & Associates in June 2024.

Costs and competition

Most new boutique firms focus on sectors like TMT (tech, media and telecom), competition, energy, ESG, or disputes, filling a clear gap that big firms can’t always address quickly or flexibly. Industry experts expect the rise of niche firms deeply aligned with sectors such as renewable energy, fintech, startups, and real estate in 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 capacities. This combined approach will ultimately benefit businesses and specialised outside counsel," said Sundara.

According to her, client expectations have evolved. “Legacy approaches to providing legal advice are passé. In-house counsel want quick, concise advice from senior practitioners, advice that does not have to be further decoded before it is presented to their internal business partners."

The fragmentation of law firms has intensified competition in the legal market as boutiques are leveraging two main advantages: lower fees and direct partner-level service.

With minimal infrastructure costs, smaller firms can offer lower rates and direct founder attention, said Anand. “In contrast, at very large firms, clients may not get easy access to partners, with junior lawyers handling the work."

Bhat, too, cited his learning after two decades in a large firm: clients now value “clarity of advice, commercial sensibility and speed of execution" over the size of the brand alone.

Some founders took the help of technology to manage time and cut costs.

Anthony uses a proprietary artificial intelligence (AI) tool, ‘Varina’, for tasks typically assigned to junior-level associates in law firms. “The firm is cutting out the sort of burn, which is humans spending many hours doing mundane tasks," he said. “This allows the firm from charging the clients a disproportionate number of billable hours."

India’s emerging commercial hubs are another factor that has prompted some to start out on their own, offering niche services.

“Most established setups were either based in Mumbai or focused on select areas, leaving growing businesses, startups, and individuals looking for accessible legal support," said Sanjana Suri, founder of Dhan Legal & Co. in Pune. Her firm helps immigrant entrepreneurs and US-based small and medium enterprises (SMEs) solve complex legal problems without paying inflated American law firm rates.

Startup risk

For large law firms, partners leaving to launch their own ventures only adds to the talent exodus that the legal profession has been facing for the past year. They are trying to stem this churn.

“The rise of boutiques is not a challenge, but a significant opportunity," says Amar Sinhji, executive director of Human Resources at Khaitan & Co. He said large firms maintain an edge for clients seeking long-term strategic counsel.

However, Sinhji conceded that the legal landscape has intensified competition for talent.

Khaitan is focusing on building long-term careers, not just short-term roles, he said. “Today, retaining talent goes well beyond compensation. It is about creating a platform that offers purpose, meaningful opportunity and a clear path for professional growth."

Boutique firms also face growth limitations, particularly in handling large-scale corporate transactions, according to Anand. “There are quite a few cases of founders who try for a few years and ultimately seek to rejoin a larger firm. Not many are that successful."

Adding to this pressure, large conglomerates have strengthened in-house legal teams, reducing their overall spend on external firms. While big corporate groups still outsource critical or large-scale matters, law firms are seeing fewer engagements as corporations spend more on their internal teams, according to Anand.

Anthony predicts the future may lie in generalist and specialist firms working together in a mutually beneficial relationship, calling it a compelling alternative to the traditional all-in-one large firm model. Bhat foresees a hybrid model where boutiques become the first port of call for clients who want agility, while companies with larger legal budgets engage big firms for scale-heavy matters and boutiques for swiftness.

The story has been updated to reflect the change in Karishma Sundara's designation.