eFishery, an Indonesian aquaculture startup, reported a $50 million loss or approximately Rp 819.3 billion in 2024, according to a report by DealStreetAsia. A forensic audit concluded that eFishery is no longer commercially viable, recommending the closure of most of its businesses and monetizing its intellectual property.

The audit, conducted by FTI Consulting, advised eFishery to shut down its low-margin upstream supply and downstream distribution operations. However, the intellectual property behind the startup's technology could either be sold or transferred to a new company.

Despite the significant losses, eFishery still holds a total cash reserve of $50.8 million across its group. This includes $12.74 million in Singapore, $1.22 million in India, and $20,000 in the United States as of February 10, 2025.

In 2024, eFishery reported revenues of $182.9 million, or Rp 3 trillion. The quarterly breakdown is as follows:

• Q1: $65.7 million
• Q2: $54.9 million
• Q3: $37.9 million
• Q4: $24.5 million

At the same time, the startup recorded losses totaling $50 million.

• Q1: $12.7 million
• Q2: $12.8 million
• Q3: $12.3 million
• Q4: $12.2 million

The EBITDA margin was reported at -24.9%, while net loss margins deepened each quarter:

• Q1: -19.4%
• Q2: -23.4%
• Q3: -32.4%
• Q4: -49.6%

The company's financial health was further questioned after internal records revealed discrepancies in reported profits and partner figures. While eFishery claimed a profit of $16 million and revenue of $752 million from January to September 2024, the forensic audit found the company had actually incurred losses of $35.4 million, with revenue only reaching $157 million.

Additionally, eFishery stated it had over 400,000 fish farmer partners, but the audit showed the actual number was only 24,000. The audit concluded that the management inflated revenue by nearly $600 million over nine months through September 2024, more than 75% of the reported figure.

FTI Consulting’s report, which spans 52 pages, was circulated among investors and reviewed by Bloomberg News in January 2025. It was based on over 20 interviews with staff and a review of internal communications on platforms like WhatsApp and Slack.

Despite raising $314 million through five funding rounds, only $8.5 million, or around 2.7%, was used to develop eFishery's technology. The report noted an additional $8 million would be required to fully integrate the startup's technology.

Katadata.co.id reached out to eFishery's management, now under FTI Consulting, for comments on the data but has not received a response.

PHOTO: EFISHERY

This article was created with AI assistance.