BYJU’S Asserts Ownership of $533 Million Funds Amidst Dispute with Investors

• ByStartupStory     |    March 4, 2024

In a preemptive move ahead of a scheduled US court hearing, BYJU’S, the prominent edtech company, declared on Sunday that its subsidiary remains the rightful beneficiary owner of the $533 million funds parked in an American investment firm. The announcement comes in response to recent claims that the funds were inaccessible for employee salaries due to a dispute with investors after a right issue.

“Camshaft, in its latest submission, has disclosed to the Delaware Court that the $533 million was transferred from BYJU’S Alpha to another 100% Think & Learn owned subsidiary, Inspilearn LLC (a Delaware firm),” BYJU’S stated, refuting allegations made before the National Company Law Tribunal (NCLT) in India. The company emphasized that the funds continue to reside within a Think and Learn subsidiary.

According to reports, the Florida hedge fund, Camshaft Capital, faced the possibility of sanctions from a federal judge on Monday if it failed to reveal the location of the money. “Camshaft, in its latest submission, stated it had transferred the money to a non-U.S. Fund in the name of a 100% subsidiary of Think & Learn, Inspilearn LLC,” BYJU’S claimed, maintaining the funds’ association with their group entities.

“The latest disclosure dispels fake narratives about $533 million being siphoned off,” BYJU’S asserted, countering what it deems as unfounded allegations. The statement attributed the controversy to “predatory bond traders” filing proceedings before the US Bankruptcy Court and “unlawfully accelerating the Credit Agreement.”

BYJU’S further clarified that the $1.2 billion raised in 2021 through BYJU’S Alpha for international operations faced no restrictions on usage or movement as per the Credit Agreement with lenders. The company accused certain shareholders of pursuing a “misguided attempt” before the NCLT to replace the current board and CEO, Mr. Byju Raveendran.

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