Byju’s, the prominent edtech firm, recently embroiled in controversy over salary payments, has declared itself the beneficiary owner of a $553 million fund parked in its subsidiary in the US. This revelation comes ahead of a US court hearing probing the whereabouts of the funds and amidst allegations of financial mismanagement.
In a statement issued on Sunday, Byju’s clarified that its subsidiary in the US, Inspilearn LLC, is the rightful owner of the $553 million, refuting claims of any wrongdoing. However, the company’s decision not to utilize these funds for salary payments raises questions about its financial strategy and decision-making.
The disclosure emerged in response to inquiries made by Camshaft, a Florida hedge fund managing the funds, in a Delaware Court. Byju’s explained that the funds were transferred from BYJU’S Alpha to Inspilearn LLC, a 100% Think & Learn-owned subsidiary based in Delaware. Byju’s maintains that the funds are securely held within the subsidiary, contrary to allegations presented before the National Company Law Tribunal (NCLT) in India.
Camshaft, facing potential sanctions from a federal judge, clarified in its latest submission that the money had been transferred to a non-US Fund under the name of a 100% subsidiary of Think & Learn. Byju’s emphasized that no limited partners in the Camshaft Capital Fund have any affiliation with or are subsidiaries of Think & Learn.
The edtech giant asserts that Camshaft’s actions align with its position that group entities remain the rightful beneficiaries of the funds, challenging claims of technical defaults raised by lenders seeking information.
Byju’s also dismissed accusations of fund misappropriation, branding them as “fake narratives.” The company contends that its Credit Agreement with lenders does not impose restrictions on the usage, movement, or investment of the disbursed funds.
The statement concludes by attributing the controversy to “predatory bond traders” and unfounded allegations by Think and Learn shareholders. Byju’s suggests these actions are part of an orchestrated campaign to disrupt the company’s operations and discredit its leadership.
