Indonesian unicorn eFishery hires FTI Consulting amid fraud allegations

Indonesian aquaculture technology startup eFishery has appointed FTI Consulting to assume acting management of the company and conduct an independent investigation, following serious allegations of financial fraud that have shaken Southeast Asia’s food tech sector.

Once hailed as one of Indonesia’s most promising startups, eFishery reached unicorn status in 2023 after raising $200 million in a Series D funding round. Founded in 2013, the company became known for its smart fish-feeding technology and its vision of creating a sustainable aquaculture ecosystem across Indonesia – one of the world’s largest seafood producers.

However, the startup’s rapid ascent has come under scrutiny. Reports surfaced in late 2024 alleging that eFishery inflated its revenue by nearly $600 million in the first nine months of the year. The company also reportedly misstated profits of $16 million, while in reality incurring losses of more than $35 million.

The alleged misconduct is said to have involved co-founders Gibran Huzaifah and Chrisna Aditya, and prompted protests by employee groups in January demanding transparency and accountability.

In a statement issued on 4 February, eFishery’s board confirmed that it had engaged FTI Consulting “with the approval of shareholders” to conduct a comprehensive review of the company’s governance, finances, and internal controls. “Involving independent third-party management aims to facilitate a thorough and objective business review to determine the best path forward for the group,” the board said.

FTI Consulting – a global business advisory firm specialising in forensic accounting, restructuring, and crisis management – has assumed temporary management responsibilities at eFishery. The consulting firm stated that its immediate focus is on gaining “a clear understanding of the current situation” and ensuring operational stability while investigations continue.

According to Bloomberg, FTI Consulting has already described eFishery as no longer commercially viable in its current form, warning that investors may recover as little as nine cents on the dollar. The findings are expected to have broader implications for the region’s growing agritech and food tech sectors, where investor confidence has been shaken by the scandal.