eFishery scandal impacts Indonesian startup fundraising

The eFishery scandal is causing significant caution among investors in the Indonesian startup ecosystem. Following reports that the company, once valued at US$1.4 billion, falsified revenue and profit reports, approximately US$300 million in investor funds were reported missing. Police have detained eFishery founder Gibran Huzaifah and two former executives, with the legal process currently moving to the prosecutor’s office.

This loss of trust has directly impacted other startups, such as the quick-commerce company Astro. Founders of Astro reported difficulties in raising capital and noted that their valuation fell by approximately 30% compared to previous rounds. Despite these challenges, Astro secured a US$51.9 million investment from Amazon.com, Inc. in September.

Industry experts note that investors are now implementing much higher standards and more rigorous due diligence, placing greater emphasis on corporate governance, efficiency, and revenue to mitigate risks.