Indonesia’s eFishery dives into financing but plays it safe

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Hello there,

While studying in the Indonesian city of Yogyakarta, I would have immediately thought of eFishery – not Gojek or Bukalapak – when I heard the word “startup” – partly because I didn’t really use any online transportation or ecommerce services until I moved to Jakarta.

Another reason was that I had read about Gibran Huzaifah, the aquaculture firm’s founder, being included in Forbes’ 30 under 30 list. Later, I also learned about how Huzaifah went through tough times during his college years due to financial problems.

The real challenge for Huzaifah at eFishery, which has enjoyed accelerated growth and a fast track to profitability, may have begun when it dived into lending two years ago. In its early days, convincing financial institutions to join hands with the company was a challenge, as my colleague Ardi explains in this week’s Big Story. Failed harvests – sometimes caused by uncontrollable factors such as the weather – could also lead to loans turning bad when farmers couldn’t make repayments.

Nevertheless, eFishery is optimistic that its financing venture will work as it believes it has the tools, data, and strategy to mitigate risks. It’s also not monetizing the business just yet.

Speaking of financing, Indonesia-based peer-to-peer lender Modalku has dipped its toes into the multifinance industry in Indonesia. With the sector already packed with tech and banking players vying for borrowers, how is Modalku positioning itself? More in this week’s Hot Take.

– Budi

THE BIG STORY

Indonesia’s eFishery revels in farmer financing foray, but there’s a catch

Image credit: Timmy Loen

The company is enjoying notable growth in the trouble-laden farmer financing industry but has chosen not to fully capitalize on the opportunity yet.

THE HOT TAKE

Is there enough space left for Modalku in multifinance?

Co-founder and CEO of Modalku, Reynold Wijaya / Photo credit: Modalku

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