Camshaft announced this week that approximately $533 million that it controlled for Byju's Alpha, the U.S. arm of Indian education technology group Byju's, has been transferred to another wholly owned U.S.-based subsidiary of Byju's. It made the disclosure in a court filing, refuting claims that Indian companies had used the wealth. Misappropriation of money from the services of a manager.
Camshaft said in a court filing that the capital was transferred to Byju's Delaware-based subsidiary Inspilearn LLC. Camshaft also clarified that Byju and its entities are not limited partners of hedge funds.
Byju's said in a statement that the camshaft disclosure is consistent with the Indian startup's position of remaining a beneficiary of the capital. The company added that the credit agreements it entered into with lenders do not mandate how the funds will be used, nor do they require a specific amount to be maintained as collateral.
“The latest disclosure dispels the false rumors that $533 million was siphoned off,” the startup said.
Camshaft Capital made headlines last year when Byju's lenders questioned the wealth adviser's legitimacy and claimed that $533 million was collateral for $1.2 billion lent to Indian startups. It attracted attention. A select few estranged investors in Byju's then used the allegations to discredit Byju's founder Byju Raveendran.
Byju's, which will be valued at $22 billion in early 2022, is also embroiled in a legal battle with some of its Bengaluru shareholders who are seeking to cancel the Edtech Group's rights issue.
On Saturday, Byju's told its employees that although the company had successfully raised fresh funds through a rights issue, a select few investors (four out of over 150 investors) had taken themselves to ruthless levels. He bent over and informed them that they could not definitely utilize the funds raised. To pay your hard-earned wages. ”
As a result, more than 20,000 Byju's employees will not receive their salaries on time, Raveendran said in a letter to employees.
Last month, some shareholders voted to remove Mr. Raveendran from Edtech Group. The next day, Mr. Raveendran assured his employees that he was still CEO and questioned the legitimacy of the actions of a select group of investors.