SoftBank-Backed Indonesian Fish Firm Criticized For Faking 75% Of Sales Figures

EFishery Pte, one of Indonesia’s most prominent startups, may have inflated its revenue and profit over several years, according to an internal investigation triggered by a whistleblower’s claim about the company’s accounting, David Ramli, Olivia Poh, and Yoolim Lee reported for Bloomberg News.

EFishery reported a $16 million profit for the first nine months of 2024 to investors but the investigation by the board alleges that the firm actually incurred a $35.4 million loss. I Photo: EFishery

A preliminary and ongoing probe into the agritech startup, backed by investors including SoftBank Group Corp. and Temasek Holdings Pte, estimates that management inflated revenue by almost $600 million in the nine months through September last year, according to a 52-page draft report circulated among investors and reviewed by Bloomberg News.

This would mean that more than 75% of the reported figures were fabricated, the report stated.

EFishery, which provides feeders to fish and shrimp farmers in Indonesia, was once a darling of the nation’s startup scene and achieved a valuation of $1.4 billion when G42, an AI firm controlled by UAE royal Sheikh Tahnoon bin Zayed Al Nahyan, backed its latest funding round.

The company has raised hundreds of millions of dollars to modernize the country’s fish industry, offering farmers feeding devices and feed, then purchasing their produce to sell in the market.

EFishery reported a $16 million profit for the first nine months of 2024 to investors. However, the investigation, commissioned by the board, alleges that the firm actually incurred a $35.4 million loss.

Revenue for the period was estimated at $157 million, far below the $752 million investors were told, according to the report. Management also inflated revenue and profit figures for several previous years, the report revealed, as noted by Min Jeong Lee in Bloomberg News.