An Indonesian agriculture tech startup that raised hundreds of millions of dollars appears to be a giant fraud. The company, called eFishery, reportedly told investors including SoftBank that it had revenue of $752 million for the nine months through September of last year when the real amount was actually $157 million. That means its revenue was 75% lower than it had presented. You could call it a pescatarian ponzi.
eFishery says its mission is to address a surging global demand for animal protein by modernizing the fishing industry in Indonesia. eFishery develops end-to-end technology for fish farmers, from internet-connected smart feeders to a mobile app where farmers can sell their harvest. Shrimp in particular is quite high in protein, and the thinking was fish farmers in Indonesia could use modern tech to increase yields and supply a growing global population.
Alas, it seems not that many fisheries wanted what eFishery was selling: “While eFishery said it had over 400,000 fish feeders in operation at customers,” Bloomberg wrote, “initial investigations estimate it only had about 24,000.” eFishery has been in business since 2013.
Bloomberg earlier reported on the alleged fish fraud, which came to light after a whistleblower approached eFishery’s board with allegations that its numbers were not accurate. Besides the massive revenue discrepancy, company leadership told investors it had made $16 million in profit for a nine-month period when in fact it had lost $35.4 million.
eFishery’s CEO was fired after an investigation by the board quickly turned up accounting inconsistencies. The investigation remains ongoing, according to Bloomberg, but it seems like someone is about to receive the Elizabeth Holmes treatment.
What are the odds the founders of eFishery got their inspiration from 4chan?
eFishery has lost more than $152 million since its inception, according to the investigation. Thankfully its backers include the likes of G42, an AI firm controlled by the United Arab Emirates. Which is to say, they will be fine.
