As eFishery flounders, aquatech firms refuse to sink

EFishery giveth, eFishery taketh.

Investor interest in Surabaya-based Crustea, which develops an AIoT solution to optimize shrimp pond oxygen levels, surged in 2023 as eFishery’s valuation and public profile soared.

But now, with the unicorn’s alleged fraud dominating headlines, Crustea is swimming against the current of skepticism – and not just from investors.

Fish farmers looking at the eFishery app on a smart phone / Photo credit: eFishery

“Some of our customers are up-to-date with the eFishery news, and for them, they think that all tech startups are troubled or dishonest,” Roikhanatun Nafi’ah, co-founder and CEO of Crustea, tells Tech in Asia.

​​Nafi’ah is one of the agritech founders in Indonesia and across the region who must now work harder to differentiate their business from eFishery and its inflated growth figures.

Beyond the headlines, eFishery’s ripple effects on fellow agritech startups and competitors could redefine a sector once deemed overflowing with opportunities. But founders argue that the industrywide doom and gloom is unwarranted.

Just one bad apple?

Founders interviewed by Tech in Asia for this story argue that eFishery’s troubles shouldn’t be seen as a reflection of the entire aquatech sector. 

After all, Indonesia has one of the world’s longest coastlines – meaning it offers a wealth of marine products.

This is an advantage Delos, which provides Indonesia’s shrimp farms with tech and export channels, wants to maximize. Guntur Mallarangeng, the aquatech startup’s co-founder and CEO, points out that the country grapples with lagging fishery exports. 

In 2024, Indonesia exported marine products worth US$4.8 billion – only about a quarter of China’s capacity, despite China having just 15% of Indonesia’s coastline.

See also: Should Temasek cast net in startup waters after eFishery fiasco?

Mallarangeng believes Indonesia’s fisheries industry needs to tap into export markets – where the real money is – and make sure that supply keeps up.

But eFishery’s model might not be the answer.

The pitfall of pitch decks