In court documents filed this week, Camshaft said that some $533 million it managed for Byju’s Alpha, a U.S. branch of the Indian edtech company Byju’s, was transferred to another 100% U.S.-based subsidiary of Byju’s. This disproved claims that the Indian company used the wealth manager’s services to steal money.
In the court documents, Camshaft said that the money was sent to Inspilearn LLC, which is a Delaware-based branch of Byju’s. Also, Camshaft made it clear that Byju’s and none of its partners are limited partners in the hedge fund.
In a statement to TechCrunch, Byju’s said that Camshaft’s information supports the Indian startup’s claim that it was still the rightful owner of the capital. Byju’s said that the Credit Agreement it signed with the lenders didn’t say how it had to use the money or how much it had to keep as security.
The startup said, “The latest information dispels false stories about $533 million being stolen.”
Lenders in Byju’s called Camshaft Capital into question last year because they said the $533 million was collateral for a $1.2 billion loan they had given to an Indian startup. This made the news. A small group of investors who had soured on Byju’s later used the claim to question the character of the company’s founder, Byju Raveendran.
Byju’s was worth $22 billion in early 2022. It is also in a legal fight with some of its shareholders in Bengaluru, which is its home market, who want to cancel a rights issue at the edtech company.
On Saturday, Byju’s told its workers that the startup had raised new money through a rights issue, but that “4 out of the 150+ investors have stooped to a heartless level,” which meant that the money raised could not be used to pay employees’ salaries.
More than 20,000 Byju’s workers would not get their pay on time because of this, Raveendran wrote to her employees.
A vote by owners last month got Raveendran kicked out of the edtech group. The next day, Raveendran told his workers that he was still their CEO and questioned whether the action by the select investor group was legal.
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