Camshaft, a wealth manager, revealed in court filings this week that it transferred $533 million it managed for Byju’s Alpha, a U.S. unit of Indian edtech group Byju’s, to another 100% U.S.-based subsidiary of Byju’s. This disclosure refutes allegations of misappropriation of funds by the Indian firm.
Key Takeaway
Camshaft, the wealth manager, disclosed the transfer of $533 million it managed for Byju’s Alpha to another U.S.-based subsidiary of Byju’s, refuting allegations of misappropriation of funds by the Indian firm.
Camshaft’s Statement
In the court filings, Camshaft clarified that the capital was transferred to Inspilearn LLC, a Delaware-based subsidiary of Byju’s. It also emphasized that Byju’s or any of its entities are not limited partners in the hedge fund.
Byju’s Response
Byju’s stated that Camshaft’s disclosure aligns with the company’s position that it remained the beneficiary holder of the capital. The firm further added that the Credit Agreement it signed with the lenders didn’t mandate how it used the funds, nor required a specific amount to maintain as collateral. Byju’s emphasized that the latest disclosure dispels false narratives about the alleged siphoning off of $533 million.
Legal Battles and Financial Challenges
Byju’s, valued at $22 billion in early 2022, is currently entangled in a legal battle with some of its shareholders in Bengaluru who have been attempting to revoke a rights issue at the edtech group. The company also faced challenges in utilizing the funds raised through a rights issue to pay its employees’ salaries, affecting over 20,000 employees.
