Temasek-backed eFishery cautious on IPO plan

EFishery co-founder and CEO Gibran Huzaifah at the 2024 Tech in Asia Conference in Jakarta/Photo credit: Tech in Asia

Indonesian agritech giant eFishery is taking a measured approach to its much-anticipated public listing, even though it has been considering going public since last year.

Its CEO, Gibran Huzaifah, said on Wednesday (October 23) that despite the startup’s leap into profitability and rapid expansion into India, it is choosing to bide its time.

An IPO remains a key objective, he said. But Huzaifah stressed that the timing would depend on the company’s overall readiness, including its financial health and operational stability, rather than on riding market trends.

“An IPO is essential for us to provide an exit for our shareholders,” the CEO said.

He noted, however, that the timing of its listing must align with market conditions.

“The first part of the journey is ensuring the company is ready internally – strong financials and governance. The second part is waiting for the right market conditions. It shouldn’t be the other way around.”

Huzaifah was speaking during a panel discussion on the first day of the Tech in Asia Conference, which was co-organized by The Business Times, in Jakarta.

Plans by Temasek-backed eFishery to go public gained traction following its successful raise of US$200 million in its series D funding last year, which boosted the company’s valuation to US$1.4 billion.

Bandung-based eFishery, in its 11th year of business, provides fish and shrimp farmers with access to essential technology, feed, financing, and market opportunities.

While many tech outfits have faced funding challenges and layoffs, the company is among the Indonesian aquaculture startups that have managed to thrive, attracting millions of dollars into the ecosystem in the last three years.

Huzaifah pointed out that the excitement around going public is understandable, but that the move comes with significant challenges that should not be underestimated.

“I know there has been a lot of anticipation, but we want to ensure that going public isn’t just an exit for founders or investors. I can definitely envision myself continuing this journey for the next 10 to 20 years and making a lasting impact.”

After solidifying its position in the domestic market, the company expanded its presence in India last year and achieved positive earnings before interest, taxes, depreciation and amortisation (EBITDA) in the space of a year.