Edtech giant Byju’s, allegedly hid $533 million in an obscure three-year-old hedge fund, according to lenders trying to recover the cash. The allegations are the latest twist in an increasingly public battle between Byju’s, and lenders who claim the $533 million is collateral for a $1.2 billion loan.
The tech giant in 2022 transferred more than half a billion dollars to Camshaft Capital Fund, some Byju’s lenders claim in a lawsuit, according to a report by Bloomberg.
Investment firm Capital Fund was founded by William C. Morton when he was just 23 years old. Morton’s fund received the money despite an apparent lack of formal training in investing.
Meanwhile, Byju’s said it is not a party to the Florida court proceedings and hasn’t been served with copies of the lawsuit.
On September 11, Byju’s had put two of its businesses -- reading platform Epic and higher education platform Great Learning -- up for sale. Byju's had acquired both assets during the peak of 2021 to build its $22 billion empire.
Byju’s was founded in 2015, Raveendran has attracted capital from some of the biggest investors in the tech world, including Mark Zuckerberg’s Chan Zuckerberg Initiative, Silver Lake Management, and Naspers Ltd. Byju’s was valued at more than $20 billion last year when it considered merging with a special-purpose acquisition company.