eFishery’s Accounting Scandal: The End of the Indonesian Unicorn Dream?

The Indonesian startup industry has grown exponentially in recent years, producing numerous unicorns. However, the recent allegations of financial misconduct at eFishery have sent shockwaves through the ecosystem, severely shaking the industry’s credibility. While giants like GoTo and Bukalapak have gone public, and non-fintech startups continue to struggle with growth and exit strategies, the agritech firm eFishery was seen as the “beacon of hope” for Indonesia.

However, a recent internal investigation has revealed a stark reality: while the company reported $752 million in revenue and $16 million in profit, the actual figures are allegedly just $157 million in revenue with a $35.4 million loss. This suggests that approximately 75% of the reported revenue was fabricated.

eFishery: Business Model and Services

Founded as a solution for aquaculture, eFishery provides technology-driven services for fish and shrimp farmers:

• eFisheryFeeder: An IoT-based automated feeding device that helps farmers streamline the feeding process and optimize growth.

• eFisheryKu: A comprehensive platform where farmers can manage the entire cultivation process, from purchasing feed and securing financing to selling their products.

The Rise to Unicorn Status

Established in 2013, eFishery utilized IoT technology to revolutionize the aquaculture sector. The company reached unicorn status following several major funding rounds:

• September 2015: Raised $500,000 in a Seed round from Aqua Spark (Netherlands).

• November 2018: Raised $4.7 million in Series A from Wavemaker Partners (USA) and Maloekoe Ventures.

• August 2020: Raised $14 million in Series B from GO VC, Northstar Group, and Endeavor.

• January 2022: Raised $90 million in Series C from Temasek, Peak XV Partners, and SoftBank Vision Fund.

• July 2023: Raised $200 million in Series D from SoftBank and Northstar Ventures.

• May 2024: Secured a $30 million loan from HSBC (UK).

Through these investments, eFishery reached a valuation of $1.4 billion in 2023, becoming Indonesia’s first agritech unicorn.

Fraud Discovery and Internal Investigation Results

In December 2024, a whistleblower report surfaced, alleging that eFishery had been inflating its revenue and profits for several years. According to the internal probe, for the period of January to September 2024, the company reported $752 million in revenue and $16 million in profit to its investors. The investigation revealed the true figures were $157 million in revenue and a $35.4 million loss, indicating a massive discrepancy in financial reporting.

Management Shake-up and Turmoil

Following the scandal, co-founders CEO Gibran Huzaifah and CPO Chrisna Aditya were removed from their positions. As an interim measure, CFO Adi Wibisono has been appointed as Interim CEO, with Albertus Sasmitra taking over as Interim CFO. This leadership crisis has sparked serious concerns regarding the company’s future stability and brand reputation.

Gibran Huzaifah

Growing Pains in the Indonesian Startup Ecosystem

The eFishery scandal is not an isolated incident. Several other Indonesian startups have recently faced issues ranging from fraud to business failure:

• Investree: Its business license was revoked by the OJK due to the misappropriation of funds by its founder.

• Zenius: The edtech startup ceased operations in January 2024 due to operational challenges.

• Bukalapak: The e-commerce giant stopped selling physical goods due to intense competition, causing its stock price to plummet.

• UangTeman: An online lending pioneer that went bankrupt and had its license revoked due to chronic financial issues.

Is the Lack of Integrity Killing the Unicorn Dream?

In an ecosystem dominated by finance and e-commerce, eFishery—as an agritech and deep-tech player—represented a unique hope for Indonesia. Personally, I find this development deeply disappointing as I held high expectations for their success.

The eFishery scandal highlights a critical lack of transparency and accountability within the Indonesian startup scene. This doesn’t just damage one company; it taints the entire industry’s reputation, making international investors far more cautious and future fundraising significantly more difficult.

To prevent such crises, strengthening corporate governance and ensuring transparency is urgent. The prerequisite for growth and success must be the integrity and dignity of the leadership. We can only hope that the eFishery case serves as a harsh lesson, allowing the industry to recover trust and move toward a more sustainable future.

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