Camshaft says Byju’s unit is beneficial owner of $533M funds
Camshaft disclosed in court filings this week that some $533 million it managed for Byju’s Alpha, a U.S. unit of Indian edtech group Byju’s, was transferred to another 100% and U.S.-based subsidiary of Byju’s, thereby refuting allegations that the Indian firm used the wealth manager’s services to siphon off money.
In the court filings, Camshaft said the capital was transferred to Inspilearn LLC, a Delaware-based subsidiary of Byju’s. Camshaft also clarified that neither Byju’s 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 remained the beneficiary holder of the capital. The Credit Agreement it signed with the lenders didn’t mandate how it used the funds, nor did it require a specific amount to maintain as collateral, Byju’s added.
“The latest disclosure dispels fake narratives about $533 million being siphoned off,” the startup said.
Camshaft Capital attracted media attention last year after lenders in Byju’s questioned the legitimacy of the wealth adviser as they claimed the $533 million was a collateral for a $1.2 billion they had lent to the Indian startup. A select few estranged investors in Byju’s later used the allegation to cast doubt on the character of Byju’s founder Byju Raveendran.
Byju’s, valued at $22 billion in early 2022, is also ensnared in a legal battle with some of its shareholders in Bengaluru, its home market, who have been attempting to revoke a rights issue at the edtech group.
On Saturday, Byju’s informed employees that the startup had successfully raised new funds through the rights issue but a select few investors “(4 out of the 150+ investors) have stooped to a heartless level, ensuring that we are unable to utilize the funds raised to pay your hard-earned salaries.”
As a result of this, more than 20,000 employees of Byju’s wouldn’t receive their salaries on time, Raveendran wrote to employees.
Last month, some shareholders voted to remove Raveendran from the edtech group. A day later, Raveendran assured employees that he was still their chief executive and questioned the legitimacy of the select investor group’s action.
