Title: A Questionable Quirk in this Innovative Fish Tech Business
In the realm of Indonesian tech startups, eFishery, a company posing as a solution to the escalating global demand for animal protein, seems to have gained notoriety for an apparent fraudulent act. Raising significant investments, including funds from SoftBank, the firm reported an astounding $752 million in revenue for the nine-month period ending September of the previous year. However, the real figure was a stark contrast at only $157 million, making for an alarming 75% revenue discrepancy. This misrepresentation has been likened to a "pescatarian ponzi" scheme.
eFishery's announced mission was to modernize the fishing industry in Indonesia, offering end-to-end technology solutions ranging from smart feeders to a mobile app where farmers could sell their harvest. Shrimp, with its high protein content, was a key focus, as the idea was for Indonesian fish farmers to leverage technology to increase yields and meet the demands of a burgeoning global population.
Unfortunately, it appears that few fisheries were interested in eFishery's offerings: According to a report by Bloomberg, while the company claimed over 400,000 fish feeders were in operation at customers' sites, initial investigations estimated there were only about 24,000 in use. eFishery has been around since 2013.
Bloomberg initially reported on these alleged fish fraud accusations, which were sparked by a whistleblower approaching the company's board with concerns over the accuracy of their financial numbers. Apart from the significant revenue discrepancy, the company leadership had also reportedly informed investors that it had made a $16 million profit during a nine-month period, when in fact, they had experienced a loss of $35.4 million.
Following an investigation, eFishery's CEO was dismissed. While the probe continues according to Bloomberg, it seems that someone is bound to face the "Elizabeth Holmes treatment."
Given the company's financial losses, which amounted to more than $152 million since its inception, it's fortunate that investors like G42, an AI firm controlled by the United Arab Emirates, are involved. This suggests they will likely weather the storm.
As for the possibility of inspiration from 4chan, the unconventional and often controversial online forum, the evidence remains elusive.
The tech industry is continually looking towards the future, seeking innovative solutions to global challenges. Despite eFishery's use of advanced technology to revolutionize the fishing industry in Indonesia, questions about its financial integrity persist.
In the future, it's crucial for tech startups, especially those promising significant returns, to uphold transparency and accuracy in their financial reporting to maintain public trust and avoid comparisons to notorious schemes like the one eFishery is now associated with.
