Camshaft revealed in court papers this week that some $533 million it managed for Byju's Alpha, a US unit of Indian edtech group Byju's, was transferred to another 100% US-based subsidiary of Byju's, refuting allegations of that the Indian company used the wealth. services of the administrator to misappropriate money.
In court documents, Camshaft said the equity was transferred to Inspilearn LLC, a Delaware-based subsidiary of Byju's. Camshaft also clarified that Byju's or any of its entities are not limited partners of the hedge fund.
In a statement, Byju's said Camshaft's disclosure is consistent with the Indian startup's position that it remains the beneficiary of the equity. The company further added that the credit agreement it signed with the lenders did not mandate how it used the funds or require a specific amount to be held as collateral.
“The latest disclosure dispels false narratives about the diversion of $533 million,” the startup said.
Camshaft Capital attracted media attention last year after Byju's lenders questioned the legitimacy of the wealth advisor by claiming that the $533 million was collateral for $1.2 billion they had lent to the Indian startup. A few select and estranged investors of Byju's later used the allegation to discredit the credibility of Byju's founder Byju Raveendran.
Byju's, valued at $22 billion in early 2022, is also locked in a legal battle with some of its shareholders in Bengaluru who have been trying to revoke a rights issue in the edtech group.
On Saturday, Byju's informed employees that the startup had successfully raised fresh funds through rights issue, but a few select investors” (4 out of 150+ investors) have stooped to a cruel level, ensuring that we cannot use the funds raised.” to pay their hard-earned salaries.”
As a result of this, more than 20,000 employees of Byju's would not receive their salaries on time, Raveendran wrote to the employees.
Last month, some shareholders voted to remove Raveendran from the edtech group. A day later, Raveendran assured employees that he was still their CEO and questioned the legitimacy of the select investor group's action.
