An Indonesian agricultural technology startup that has raised hundreds of millions of dollars appears to be a giant fraud. The company, called eFishery, reportedly told investors including SoftBank that it had revenue of $752 million for the nine months to September last year, when the actual amount was actually $157 million. This means that his income was 75% lower than presented. You could call it a pescatarian ponzi.
eFishery says its mission is to meet the growing global demand for animal protein by modernizing Indonesia’s fishing industry. eFishery develops end-to-end technology for fish farmers, from smart, internet-connected feeders to a mobile app that lets farmers sell their harvest. Shrimp in particular are quite rich in proteinand the idea was that Indonesian fish farmers could use modern technology to increase yields and supply a growing global population.
Alas, it seems that few fisheries wanted what eFishery was selling: “While eFishery claimed to have more than 400,000 fish feed dispensers in service with its customers,” Bloomberg wrote: “initial investigations estimate that there were only about 24,000.” eFishery has been in business since 2013.
Bloomberg earlier reported on the alleged fish fraud, which came to light after a whistleblower contacted the eFishery board with allegations that its figures were not accurate. Besides the huge revenue gap, company executives told investors they made $16 million in profits over a nine-month period, when in reality they lost $35.4 million .
eFishery’s CEO was fired after a board investigation quickly revealed accounting inconsistencies. The investigation is still ongoing, according to Bloombergbut it looks like someone is about to receive the Elizabeth Holmes Treatment.
What are the chances that the founders of eFishery were inspired by 4chan?
eFishery has lost more than $152 million since its founding, according to the investigation. Fortunately, its backers include G42, an AI company controlled by the United Arab Emirates. That is to say, they will be fine.