22-1-2025 (JAKARTA) A major financial scandal has rocked Indonesia’s startup ecosystem as aquaculture technology firm eFishery faces serious allegations of revenue inflation and profit misrepresentation, casting a shadow over one of Southeast Asia’s most promising technology companies.
The startup, backed by Singapore’s Temasek Holdings and Japanese investment giant SoftBank, is under intense scrutiny following revelations that it may have fabricated substantial portions of its financial statements, according to detailed findings from an internal investigation.
The probe, initiated after a whistleblower raised concerns about accounting irregularities, has uncovered that eFishery allegedly overstated its revenue by a staggering US$600 million in the first three quarters of 2024. The investigation reveals that actual revenue stood at approximately $157 million, rather than the $752 million reported to investors.
More alarmingly, whilst the company claimed a profit of $16 million for the same period, investigators discovered the firm actually suffered losses amounting to $35.4 million, representing a devastating discrepancy that has sent shockwaves through Southeast Asia’s technology investment community.
The fallout has been swift and severe. The board of directors, upon discovering these financial irregularities, took immediate action in December 2024, terminating the employment of co-founder and CEO Gibran Huzaifah. The company, once valued at $1.4 billion following investment from G42, an artificial intelligence firm controlled by UAE royal family member Sheikh Tahnoon bin Zayed al-Nahyan, now faces serious questions about its actual worth.
