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Camshaft Confirms Byju’s Ownership of $533M

Camshaft made a significant disclosure: the $533 million it managed for Byju’s Alpha, a U.S. entity of the Indian edtech
March 4, 2024

In recent court filings, Camshaft revealed that $533 million, previously under its management for Byju’s Alpha, a U.S. unit of the Indian edtech conglomerate Byju’s, was transferred to another 100% U.S.-based subsidiary of Byju’s. This disclosure counters allegations of financial misappropriation leveled against the Indian firm.

According to the filings, the funds were transferred to Inspilearn LLC, a Delaware-based subsidiary of Byju’s. Camshaft clarified that Byju’s or any of its entities are not limited partners in the hedge fund.

Byju’s affirmed that Camshaft’s disclosure aligns with its stance that it retained ownership of the capital. The startup emphasized that the Credit Agreement signed with lenders did not prescribe the use of funds or require specific collateral maintenance.

"This latest disclosure dispels false narratives surrounding the alleged misappropriation of $533 million," stated Byju’s.

The spotlight fell on Camshaft Capital last year when lenders of Byju’s raised concerns about the legitimacy of the wealth advisor, claiming the $533 million served as collateral for a $1.2 billion loan to the Indian startup. Subsequently, some estranged investors leveraged this allegation to challenge the credibility of Byju’s founder, Byju Raveendran.

With a valuation of $22 billion in early 2022, Byju’s faces additional challenges, including a legal dispute with shareholders in Bengaluru seeking to annul a rights issue at the edtech group.

In an internal communication, Byju’s informed employees of successfully raising new funds through the rights issue. However, due to actions by a small group of investors, over 20,000 employees will experience delays in receiving their salaries.

Last month, certain shareholders voted to oust Raveendran from his position at the edtech group. Despite this, Raveendran reaffirmed his role as chief executive, questioning the legitimacy of the investor group's actions.

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