eFishery, one of Asia’s most promising agritech startups, has become a cautionary tale of ambition turned deception.

The Indonesian startup, founded by Gibran Huzaifah, began with a noble mission, revolutionizing aquaculture through automated fish feeders. The company grew from humble beginnings to a $1.4 billion valuation, attracting heavyweight investors such as SoftBank, Temasek, and Sequoia India. 

But behind the scenes, a web of fabricated data, shell companies, and inflated books led to a financial collapse  costing investors over $300 million.

A Dream Built on False Numbers

While facing financial ruin, Gibran chose to alter financial spreadsheets to show fabricated success, which led to the unraveling that began in 2018. That single act set off a years-long cycle of deceit. Unaware of the manipulation, investors responded positively, injecting more capital to sustain the business. The company reported revenues of $752 million by 2024, but internal investigations later revealed the actual revenue was $157 million.

Investor Hype and Overlooked Red Flags

Investors continued to pour in funds despite the warning signs such as delayed financial filings, inconsistent supplier reports, and a lack of observable market disruption. Due diligence processes were reportedly manipulated, with eFishery choosing farms to showcase and preparing farmers with curated responses. 

Gibran’s charisma and rags-to-riches story helped maintain the illusion. His personal narrative resonated with investors and the media, growing up in East Jakarta and enduring extreme hardship.

The Aftermath: Broken Promises and Lost Livelihoods

The scheme became unsustainable by late 2023. eFishery devices stopped working, employees were laid off en masse, and farmers like Suganda, a tilapia farmer in West Java returned to manual feeding, losing the gains they’d made. Incomes dropped by more than 70 percent for some, and their investments in expanding fish farming operations were rendered useless.

In December, the board suspended Gibran and appointed a new interim leadership. FTI Consulting was brought in to evaluate the business and concluded that eFishery was no longer viable. Most of its assets are now being liquidated, with some machines being scrapped for as little as $6. 

Gibran Reflects, Future Remains Unclear

Gibran maintains he never stole money, claiming all funds were used to grow the company and support employees. He has returned to Bandung, helping with his brother’s shrimp farm and launching a frozen food venture. Whether he will face legal consequences remains uncertain, but the damage to Indonesia’s startup ecosystem is clear.

In the aftermath, investor confidence in high-risk emerging market startups has taken a significant hit. As Gibran admits, “I wanted to create a dent in the universe.”  However, this ambition came at an extraordinary cost.