Didn’t Siphon Off Funds, $533 Million With Our 100% Non-US Subsidiary: Byju’s

Embattled edtech company Byju’s on Tuesday said that no funds have been siphoned off and around $533 million are currently in a 100 per cent non-US subsidiary of the company.

US-based hedge fund manager Camshaft Capital is no longer managing the funds which are part of $1.2 billion Term Loan B (TLB), the company said in a statement. Camshaft has disclosed in court filings that $533 million it managed for Byju’s Alpha, a US unit of Byju’s, was transferred to another 100 per cent and US-based subsidiary of Byju’s.

Byju’s had taken a loan from certain US-based lenders in November 2021. For that purpose, a special purpose vehicle (SPV) named Byju’s Alpha was incorporated in Delaware. “Byju’s Alpha was never an operating company.

Its sole role was to receive the funds and then disburse them through the group. Under the loan agreement, there is no restriction on the use of funds, except that for regulatory reasons the funds cannot be brought to India,” the edtech company argued.