Dear reader,
The Indonesian agritech startup, eFishery, is currently facing a major crisis amid allegations of financial misrepresentation.
A draft report indicates the company overstated its revenue by nearly US$600M for the nine months ending September 2024, claiming US$752M instead of the actual US$157M. This discrepancy also revealed a loss of US$35.4 million, a stark contrast to the previously reported profit of US$16 million. Furthermore, internal records show accumulated losses of around US$152 million since the company’s inception.
The company’s claims about the number of operational fish feeders also appear to be exaggerated, with investigators suggesting 24,000 instead of the reported 400,000. Following these revelations, eFishery’s CEO and co-founder was dismissed. The company’s future is now uncertain as union members claim the company plans mass layoffs and closure.
However, eFishery’s employees are pushing back against the fraud allegations. They stress that the core technology is in-house, and many employees weren’t involved in the financial misreporting. The union is calling for management to acknowledge that the majority of the staff was not involved in the fraud. They also insist that the company has sufficient assets to resume operations.
This situation serves as a cautionary tale about the importance of financial integrity for startups.
Sainul,
Editor.
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NEWS & VIEWS
eFishery allegedly overstated revenue by US$600M
A draft report by FTI Consulting claims EFishery overstated its revenue by nearly US$600M for the nine months ending September 2024 | The report states that the company had actual revenue of US$157M, significantly lower than the reported US$752M.
eFishery employee denies entire company commits fraud
eFishery is facing investigations for allegedly inflating revenue by almost US$600M for its September 2024 results | The company also claimed it operated over 400K fish feeders, while investigators suggested the number was closer to 24,000.
eFishery staff demand answers amid layoff, closure rumours
eFishery labour union members claimed they heard that eFishery, which recently halted operations, is planning to do mass layoffs and close down in February | Workers also criticised “negative and unbalanced” reports of alleged fraud within the company.
The great decline: How Indonesia’s tech funding hit a 3-year low
The total amount raised by Indonesia’s startups in 2024 was US$323M, a 75% drop from the US$1.3B raised in 2023 and a 90% fall from the US$3.24B in 2022 | Fintech, enterprise applications, and insurtech stood out.
iMotorbike gears up for growth with US$10M Series A funding led by Headline Asia
Ondine, 500 Global, Gobi Partners, Endeavor Catalyst, and Astor FMO | The funding will support iMotorbike’s expansion into Malaysia, including new inspection centres and showrooms in key locations and its launch in Taiwan.
SoftBank shares rise on US$100B AI deal with OpenAI, Oracle
This initiative involves partnerships with OpenAI and Oracle Corp. for projects related to data centres and physical campuses | Microsoft and Nvidia are also expected to play roles in this project.
Acquiring the acquirer: Thai proptech firm FazWaz takes the helm at Lifull Connect
This strategic move comes after Lifull Connect’s acquisition of FazWaz in 2023 | FazWaz is a real estate platform that provides brokerage services to make buying, selling, or renting a property easy.
uHoo secures US$3.7M to drive growth in smart indoor air quality solutions
Wavemaker Ventures and Menarco Development Corporation led the round | uHoo Aura provides real-time data on critical environmental factors, including temperature, humidity, air quality, noise levels, and chemical pollutants.
East Ventures completes GP-led secondary transaction with Coller Capital
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500 Global launches Saudi-based fund
The fund, based in Riyadh, is supported by Saudi Arabia’s Public Investment Fund and Saudi Venture Capital | 500 Global manages US$2.3B in assets and has been active in the region since 2012.
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Users engaged with these AI-powered apps for over 7.7B hours, and downloads of apps featuring “AI” hit 17B worldwide | The rise in AI app usage followed launches such as Google’s Gemini app and the wider availability of OpenAI’s ChatGPT.
South Korea to build US$1.7B AI centre by 2027
The centre aims for a computing capacity of 1 exaflop, a significant milestone | This initiative is part of South Korea’s strategy to strengthen its AI infrastructure and rank among the top three global AI leaders.
Singapore-based TikTok-like app gains traction in US
Likee, known for its AI-powered video feed, experienced a 143% spike in downloads and a 37% rise in user activity on Jan. 18 compared to the previous day | The trend continued on Jan. 19 with an additional 11% rise in usage.
Intudo leads US$1.25M investment in Banyu to elevate Indonesia’s seaweed value chain
Banyu supports local farmers through high-quality seedlings, advanced farming techniques, and access to stable incomes | The funding will enable it to establish a seedling cultivation laboratory and nursery.
MDI Ventures invests in CYFIRMA to fortify Indonesia’s cybersecurity ecosystem
CYFIRMA’s AI-powered external threat landscape management platform provides cyber defenders with a hacker’s view to help clients prepare for impending attacks.
Line launches apps to boost Asia’s blockchain adoption
The Mini Dapps by Line Next, accessible through the Line app, include games, social media services, and Web3 content powered by Kaia, a Layer 1 blockchain developed with Kakao.
Singaporean startup launches AI tool to automate M&A processes
Navi aims to minimise the time for tasks like buyer research, data enrichment, and outreach, which typically take weeks | It also automates the creation of marketing materials, including teasers and investment memos.
Fintech firm Revolut launches robo-advisor in Singapore
This service provides users with automated investment options through diversified portfolios, starting with a minimum investment of US$100 | It customises portfolios based on users’ financial goals and risk tolerance, assessed through a series of questions.
FEATURES & INTERVIEWS
Fly0 seeks to transform travel finance for the underserved in Bangladesh
Fly0 is built on Islamic finance principles, ensuring its services are ethical, inclusive, and free of interest | Instead of charging interest, the platform earns revenue through pre-arranged commissions with travel providers.
Achieving 202%+ CAGR: How Casa Mia redefines coliving for Singapore’s young professionals
From its inception, Casa Mia catered to a growing need: affordable and community-focused solutions for individuals early in their careers.
The intersection of tech and climate change: 5 key forces that will redefine the global market
According to this Kearney report, the dual nature of tech highlights its disruptive impact and transformative potential.
FROM THE ARCHIVES
How East Ventures adopts materiality-driven ESG strategy for its portfolio companies
East Ventures Partner Melisa Irene explains how the venture capital firm promotes ESG values to its portfolio companies.
How climate tech companies in Asia measure the impact of their work
To answer this big question, we reached out to climate tech companies in the Asia Pacific and get them to explain the details.
Understanding the role of fintech, blockchain in transitioning to net zero
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From grid to code: Why good cybersecurity will help deliver net zero
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Digital transformation for nonprofits: 3 strategies for success
By embracing a culture of learning and innovation, nonprofits can use these tools to make a greater impact on the communities and causes they support.
Asia’s role in climate change: Risks, rewards, and the road to net-zero
As a region that is rich in natural, human, and technological capital, Asia is well poised for a net-zero future.
ESG frameworks and standards: Cutting through the complexity of private markets
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Is traditional finance failing you? How blockchain can unlock a more secure, personalised future
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Europe’s financial challenge: Can tech bridge the gap to sustainable practices?
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Will climate change force us to re-imagine travel in the future?
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How AI and blockchain collaborate for a transparent Web3 future
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From potential to prosperity: Blockchain’s role in reshaping Southeast Asian economies
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Navigating the evolving landscape of blockchain regulation in the metaverse era
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THOUGHT LEADERSHIP
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How AI is revolutionising the product management domain
With advancements in quantum computing, reasoning AI, and the potential of AGI, the future of product management looks both exciting and challenging.
Decoding Indonesia’s Personal Data Protection Law: Implications for fintech companies
Indonesia’s PDP Law drives digital progress, urging fintechs to prioritise consumer trust and excellence beyond compliance.
10 mistakes any new founder should avoid in personal branding
Personal branding might seem like a task that can wait, but it significantly influences how people perceive our business.
Squid Game’s Front Man: A masterclass in persuasion
As someone with over 10 years of experience in Public Relations, I couldn’t help but notice the Front Man’s incredible ability to manipulate and persuade.
The post Ecosystem Roundup: eFishery faces fraud allegations | Indonesia’s tech funding hits a 3-year low | iMotorbike raises US$10M appeared first on e27.