Indonesian aquatech startup eFishery, which has been in the headlines for allegations of financial irregularities at the firm, has caused serious reputational damage to the broader startup community.
“It’s a total embarrassment because of their systematic fraud. I think the damage they [eFishery] have done to Indonesia, the startup community, and our credibility is massive. So we’ll get to the bottom of it, and I think we’ll take this very seriously,” said Patrick Walujo, co-founder and managing partner of Northstar Group, one of the investors in the aquatech startup, at the Indonesian PE-VC Summit 2025.
As reported by DealStreetAsia yesterday, the alleged fraud is understood to date back to 2018 when the startup was raising its Series A round. Initial findings by a global firm hired to conduct a forensic audit on eFishery reveal a complex scheme of alleged financial manipulation involving dual financial reporting, setting up of nominee companies, and fabricated transactions that purportedly inflated the company’s revenue and profit figures for years, according to sources aware of the matter.
eFishery’s case is the latest such incident in Indonesia’s startup ecosystem, after TaniFund and Investree among others. These cases should serve as a lesson for everyone, including investors. “With this case (eFishery), we need to reflect and make improvements in how we manage our operations and investee companies,” he added.
Eddi Danusaputro, Chairman of the Indonesian Venture Capital and Startup Association (Amvesindo), said that investors must also monitor the operations of a company later and not just during the investment process.
However, not all venture capital investors take an active role in the day-to-day operations of their portfolio companies. Some VCs prefer to remain passive and only get reports from the investee every month.
In eFishery’s case, where the alleged fraud dates back to 2018, active investors must take on more responsibility and address oversight responsibilities. “The blame shouldn’t fall solely on the founders; questions should also be directed to service providers, auditors, suppliers, and other related parties,” Danusaputro told DealStreetAsia.
Investors must be prepared to face these kinds of consequences. They might use liquidation preferences to protect their capital, but if all investors demand clauses that guarantee the return of their capital, it would discourage investments in the startup industry. “Investors are aware of the risks and rewards; there’s no such thing as an investment without risks,” he explained.
Indies Capital’s Pandu Sjahrir emphasised that investors have to be very responsible to the people they provide capital to. “It is my fault what happened. Our fault as investors, we allow it to happen. We’re responsible to our customers, our limited partners. That’s our fiduciary duty. And the way we’ve underwritten things, I’ve underwritten things in ACV, to be honest, has not been tight,” he admitted.
He added, “This has to stop. It’s our job to make sure that this environment improves. So even within AC Venture, Indies, etc., we’re changing the way we’re underwriting things. And we want to be a complete partner with you, but we make sure that the governance stuff is settled on day one.”
‘Using tech as enabler of efficiency’
During the panel session titled “Tech innovation and scalable models key to fight food security challenges,” agritech players emphasised the importance of governance and sustainable practices.
Poultry startup Chickin CEO and co-founder Tubagus Syailendra Wangsadisastra said as an evolving sector, a lot of agritech startups were focused on financing in the early days. Past models that relied on cash-based financing often failed due to mismanagement of funds, he added.
Chickin, which acts as a bridge between large feed producers and fragmented smallholder farmers, uses technology to optimise operations across the poultry supply chain. Its approach to technology is not about making it a primary revenue driver but about using it as an enabler for efficiency.
“To see how healthy the company is, we need to focus on the cash flow. Showing this is very important, rather than only growing the top line,” he added.
Muhammad Yoga Anindito, co-founder and CEO of Semaai, said cash flow management and payment point reliability ensured financial discipline in the agri-food products marketplace.
“We avoid common issues like account receivables and payment delays through strict management practices,” he said. “Daily planning and daily discipline are what is most important for us, and that’s what, you know, got us through until today,” he added.
