Indonesia: eFishery’s $1B Valuation Collapse, 2024 Fraud Allegations, and Sovereign Fund Exits with Shiyan Koh - E525
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Shiyan Koh), Managing Partner of  Hustle Fund), and ​​Jeremy Au) discussed:

1. eFishery Fraud Allegations: Once an Indonesian agritech darling, eFishery’s end-to-end aquaculture solutions were lauded for their potential to improve farmers’ productivity and incomes. eFishery had achieved a $1 billion valuation in 2023, backed by investors like Temasek, Sequoia, Northstar, and GGV Capital. Whistleblower allegations against the founders surfaced despite significant financial oversight, including audited accounts and reputable due diligence processes. Shiyan emphasized the trust deficit such incidents cause, and drew parallels to Zilingo’s earlier downfall which caused a chilling effect on Southeast Asia’s growth-stage investments.

2. Early Exits Signals: Jeremy highlighted the divergent strategies of eFishery’s investors during its Series D round. Notable exits included Ideasource, which achieved a 40x return over a decade, and Sui Ling Cheah from Wavemaker, who bought in via secondaries in 2019 and accomplished a similar return in five years. These moves showcased varying approaches—early-stage investors seeking liquidity versus late-stage investors balancing signaling effects. They also discussed the challenges of timing exits in Southeast Asia’s market context, balancing growth ambitions with prudent capital recovery.

3. Ecosystem Red Flags: Jeremy and Shiyan debated how weak financial governance impacts Southeast Asia’s startup ecosystem. Citing eFishery’s CFO resignation and earlier signals as red flags, they stressed the need for stricter board oversight and robust due diligence practices. Jeremy noted how fraud incidents strain ecosystem trust, making diligence processes longer and more expensive. Drawing parallels to the U.S., Shiyan emphasized how trust and long-term reputation are critical for founders aiming to sustain multiple ventures. They discussed how practices like misreporting revenue—common in sectors like e-commerce—distort valuations and create cascading governance failures.

Additional topics included Southeast Asia’s funding culture, revenue-quality metrics, exit dynamics for early employees, and honest advice to founders.

Watch, listen or read the full insight at https://www.bravesea.com/blog/efishery-unicorn-fraud)

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