Camshaft disclosed in court documents this week that approximately $533 million it managed for Byju’s Alpha, the U.S. subsidiary of Indian edtech group Byju’s, had been transferred to another 100%-owned U.S. subsidiary of Byju’s, refuting reports that the Indian company Accusations of using these wealth managers’ services are to siphon off the money.
Camshaft said in court documents that the funds were transferred to Inspilearn LLC, a subsidiary of Byju’s in Delaware. Camshaft also clarified that neither Byju nor any of its affiliates are limited partners in the hedge fund.
Byju’s told TechCrunch in a statement that Camshaft’s disclosure is consistent with the Indian startup’s position that it remains a beneficial holder of capital. Byju’s added that the credit agreement it signed with the lender did not stipulate how the funds would be used and did not require a specific amount to be retained as collateral.
“The latest disclosure refutes false claims that $533 million was misappropriated,” the startup said.
Camshaft Capital attracted media attention last year after Byju’s lenders questioned the wealth adviser’s legitimacy, claiming the $533 million was collateral for $1.2 billion they had lent to the Indian startup. The allegation was later used by a handful of alienated investors in Byju’s to raise questions about the character of Byju’s founder Byju Raveendran.
Byju’s, which was valued at $22 billion at the start of 2022, is also mired in legal battles with some shareholders in its home market of Bengaluru, who have been trying to undo the rights issue from the edtech group.
On Saturday, Byju’s informed employees that the startup had successfully raised new funds through a rights issue, but a handful of investors “(4 out of over 150 investors) have fallen to ruthless levels, ensuring that we are unable to use the funds raised.” Funds to pay your hard earned wages.”
As a result, more than 20,000 employees of Byju’s are unable to receive their salaries on time, Raveendran wrote in a letter to employees.
Last month, some shareholders voted to remove Raveendran from the edtech group. A day later, Ravindran assured employees that he was still their CEO and questioned the legality of the actions of a select group of investors.
