eFishery workers catch fish in Indonesia. Photo courtesy of the company
Indonesian startup EFishery Pte, a $1.4 billion company backed by SoftBank Group and Temasek Holdings, has allegedly been faking the majority of its sales for years, according to an internal investigation.
A preliminary probe into the company, which provides solutions for fish and shrimp farmers, estimates that its managers had inflated revenue by almost $600 million in the first nine months last year, a report seen by Bloomberg has shown.
This means more than 75% of the reported figures were reportedly falsified.
EFishery, which provides automated feeders to fish and shrimp farmers in Indonesia, is considered a prominent member of the country’s startup ecosystem, achieving a $1.4 billion valuation after its latest funding round.
The company allegedly fetched $157 million in revenue in the period, but informed investors that it had generated $752 million, the report said.
The report was launched after a whistleblower raised concerns with a board member, alleging inaccuracies in the accounts.
In response, the board initiated a formal investigation in December and subsequently removed co-founder and CEO Gibran Huzaifah after uncovering discrepancies in the accounting, people familiar with the matter told Bloomberg.
“We are fully aware of the gravity of the market speculation and we take this matter with the utmost seriousness,” eFishery said in a statement.
“We remain dedicated to upholding the highest standards of corporate governance and ethics in all of eFishery’s operations.”
eFishery’s investors include Japan’s SoftBank Group, Singapore’s Temasek Holdings, and United Arab Emirates’ G42.
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