In recent court filings, Camshaft disclosed that approximately $533 million entrusted to it by Byju’s Alpha, a U.S. subsidiary of the Indian edtech conglomerate Byju’s, had been transferred to another fully-owned U.S. subsidiary of Byju’s. This revelation serves to counter allegations suggesting that Byju’s utilized Camshaft’s services to divert funds.
According to the filings, the funds were directed to Inspilearn LLC, a Delaware-based subsidiary of Byju’s, clarifying that neither Byju’s nor its affiliates hold any limited partnership interests in Camshaft.
Byju’s responded to inquiries from TechCrunch, affirming that Camshaft’s disclosure aligns with their stance that they remained the intended beneficiary of the transferred funds. Byju’s highlighted that their Credit Agreement with lenders did not prescribe the specific utilization of funds or impose collateral maintenance requirements.
The startup asserted, “The latest disclosure dispels false narratives surrounding the alleged siphoning of $533 million.”
Camshaft Capital came under scrutiny last year when lenders to Byju’s raised concerns about the legitimacy of the wealth advisor, contending that the $533 million constituted collateral for a $1.2 billion loan extended to the Indian startup. Certain dissenting investors in Byju’s subsequently leveraged these allegations to cast doubt on the character of Byju’s founder, Byju Raveendran.
Byju’s, valued at $22 billion in early 2022, is currently embroiled in legal disputes with shareholders in Bengaluru, its headquarters, who seek to annul a rights issue at the edtech firm.
Recently, Byju’s informed its employees of successful fundraising through the rights issue, but lamented that due to actions by a small group of investors, a delay in disbursing salaries to over 20,000 employees would occur.
Last month, shareholders voted to oust Raveendran from his position. However, Raveendran reassured employees of his continued leadership, questioning the legitimacy of the investor group’s actions.
Read More On: Thestartupscoup.Com
