eFishery is currently under investigation for allegedly inflating its revenue and profit figures.
A draft report by FTI Consulting suggests that the Indonesian agritech startup overstated its revenue by nearly US$600 million for the nine months leading up to September 2024.
The report indicates that the actual revenue was US$157 million, significantly lower than the reported US$752 million. Furthermore, instead of the previously stated profit of US$16 million, the company recorded a loss of US$35.4 million.
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Internal records also reveal accumulated losses of approximately US$152 million since its inception up to November 2024.
The investigation has also cast doubt on the number of fish feeders the company claims to operate. While eFishery stated it had over 400,000 fish feeders, investigators believe the actual number is closer to 24,000. These accounting discrepancies led to the dismissal of CEO and co-founder Gibran Huzaifah in December.
Despite these allegations, eFishery’s product manager, Elsa Vinietta, has defended the company’s core technology on LinkedIn. She states that its IoT, AI, and apps are real products used by farmers, not just prototypes. She emphasizes that all core aspects of the company were developed in-house.
Meanwhile, a labour union was formed, and eFishery employees rallied outside the Bandung office. The union voiced concerns about the company’s future as reports circulated about potential mass layoffs and a complete shutdown in February. They have demanded that the company cancel any potential layoffs and reassess its business lines, noting that eFishery still possesses substantial assets.
The union also criticised statements that have unfairly tarnished the reputations of all employees, stating that most employees were not involved in any fraud. They have further urged eFishery to resume business operations and to publicly address the fraud allegations.
Patrick Walujo, CEO of GoTo Group and an investor in eFishery, has described the situation at eFishery as “embarrassing.”
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Co-founders Gibran Huzaifah and Chrisna Aditya have stepped down following the investigation and interim CEO Adhy Wibisono has also resigned.
Founded in 2013, eFishery is one of Indonesia’s largest digital co-operatives for fish and shrimp farmers. It offers an integrated aquaculture ecosystem that provides access to technology, supporting fish and shrimp farmers across Indonesia.
Last June, the firm received US$30 million in green and social loans from leading lender HSBC Indonesia.
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