Once a billion-dollar start-up, the Indonesian aquaculture firm is now struggling with financial misrepresentation, debt issues, and mass layoffs.

Investors Facing Heavy Losses
eFishery, once a rising star in Indonesia’s start-up ecosystem, has been revealed to be in a far worse financial state than previously thought. Investigators appointed by the company’s board estimate that investors may recover less than 10 cents for every dollar invested, according to documents reviewed by Bloomberg News.

The company, which developed automated feeders for fish and shrimp farmers, has suffered losses amounting to several hundred million dollars between 2018 and 2024. Reports indicate that eFishery misrepresented its financial figures for years, leading to the current crisis.

Financial Misconduct and Leadership Shake-Up
Previously valued at US$1.4 billion in 2023, eFishery secured US$200 million in funding from Abu Dhabi’s G42 and other investors. Over five funding rounds, global investors poured US$315 million into the company’s preferred shares. However, allegations of financial misconduct and inflated sales figures led to the dismissal of co-founders Gibran Huzaifah and Chrisna Aditya in late 2024.

A presentation by FTI Consulting Singapore, the advisory firm overseeing eFishery’s restructuring, described the company as “not commercially viable in its current form” and suggested winding down most of its operations. As of mid-February 2025, the company had approximately US$50 million in cash, with reserves rapidly depleting.

Investors Brace for Minimal Returns
Preference shareholders are unlikely to recover much of their investment. Under an optimistic scenario, investors could receive 9.5 cents per dollar, while a conservative estimate suggests only 8.3 cents per dollar. For example, Abu Dhabi’s G42, which invested US$100 million in April 2023, may receive just US$8.3 million back.

While representatives from FTI Consulting, SoftBank, and Temasek declined to comment, the collapse has sparked concerns about the risks of investing in high-growth start-ups without adequate financial oversight.

Debt and Operational Issues
Before its downfall, eFishery promoted AI-powered fish feeders, sensors, and a digital supply chain connecting farmers with buyers. The company also provided financing through partnerships with lenders. However, investigations uncovered severe financial mismanagement:

The company claimed to have 400,000 fish feeders deployed, but investigators estimate the real number to be only 6,300, with just 600 actively sending data.
Loan defaults surged, with 76% of US$68 million in receivables classified as bad debt. Farmers’ inability to repay loans left eFishery financially liable.
Technology failures meant that key apps were not integrated with accounting systems, and farmers were often manually matched with buyers, contradicting the company’s claims of automation.
A Traditional Business Disguised as a Tech Firm
Despite branding itself as an agritech company, the investigation found that eFishery functioned more like a traditional trading business rather than a tech-driven enterprise. Many of its touted innovations, such as PondTag sensors for water quality monitoring, were never deployed. Fish feed predictions were also found to be inaccurate almost 50% of the time.

At its peak in early 2024, eFishery had around 2,600 employees. Following mass layoffs, the workforce has now been reduced to approximately 200 staff members.

The Future of eFishery
With no viable restructuring plan in place, the company faces an uncertain future. The findings of the investigation have left farmers, employees, and investors grappling with the consequences of what was once Indonesia’s most promising start-up.