This is how eFishery went from agritech hotshot to a total PR disaster.
Once the poster child of Indonesia’s agritech industry, eFishery’s reputation is officially in crisis mode. The narrative is being written for them, fuelled by media coverage and rumours (or media coverage written based on rumours). Without an authoritative source, proactive engagement, and transparency, the company is spiralling further into crisis instead of taking control of their story.
How the story unfolded
It all started when DSA broke the story from a whistleblower tip that eFishery had been falsifying transactions, inflating financial reporting, and creating shell companies. The company reported a US$16 million profit, but investigations uncovered a US$35.4 million loss. This was then followed by extensive coverage from Bloomberg News, The Jakarta Post, and Tech in Asia.
And eFishery? Instead of owning the narrative, they issued the following response:
“We are fully aware of the gravity of the market speculation and we take this matter with the utmost seriousness,” eFishery said in an emailed statement. “We remain dedicated to upholding the highest standards of corporate governance and ethics in all of eFishery’s operations.”
This is the equivalent of watching a house burn down and saying, “We are aware of the fire and take fires very seriously.” This is saying something without saying anything.
By most accounts, eFishery’s technology and product are legitimate. And yet, one of the brightest moments in eFishery’s comms wasn’t even from the company itself – it came from a product manager’s LinkedIn post.
A LinkedIn post from an eFishery product manager helped restore some credibility by publicly confirming the authenticity of its technology, including IoT-powered feeders and water sensors. Yet, the company’s leadership should have been at the forefront of the response.
The real people behind this scandal
Outside of the 50+ page investigation reports and financial audits, this crisis involves real people – over 1,000 employees, investors, partners, and customers who deserve clear, honest communication. In most situations and also likely in this case – 99.9 per cent of the 1,000+ employees were not responsible and have probably spent countless hours post-leak trying to fix the issue.
At this stage, from a communications perspective, it is important for leadership to articulate a clear path forward and a strategy to rebuild trust.
How eFishery can salvage at this point and takeaways for founders
- Issue a formal, transparent statement: Avoid the vague, generic PR responses and provide real answers.
- Put a human face to the response: Start using a credible, human face to address concerns head on.
- Proactively engage with stakeholders: Internal memos, town halls, direct investor communications. Silence breeds speculation.
- Commit to real governance reforms: Appoint independent auditors, strengthen compliance, and communicate changes regularly.
- Create a long-term communications plan, and execute it.
eFishery can still be salvaged but only if they are proactive in their communications. At this inflection point, leadership has two choices: take control of the narrative and move forward or continue letting others define their story.
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