Khazanah backed out as anchor investor in eFishery’s series D round: sources

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

Malaysian sovereign wealth fund Khazanah Nasional backed out from being the anchor investor in eFishery’s latest fundraise, which was announced in July, people familiar with the matter told Tech in Asia.

Khazanah was reportedly going to lead the Indonesian aquatech firm’s series D round, but the sources cited two reasons why this didn’t materialize.

Firstly, there was a “management reshuffle” in Khazanah at the working level that included staff who were involved in the series D deal. Secondly, eFishery revised its valuation upwards halfway through negotiations.

The sources didn’t divulge more details as negotiations were private, but Tech in Asia understands that Khazanah and eFishery were in constant communication while the deal was being ironed out.

While eFishery declined to comment on the matter, a Khazanah spokesperson said the fund has a “robust investment process in place, meticulously evaluating a range of crucial factors that assist in our decision-making.”

Khazanah also continues to “explore potential investment opportunities” in line with its “long-term strategy,” the spokesperson added.

Citing sources, DealStreetAsia (DSA) first reported that Khazanah was to lead eFishery’s series D in March. Most of the startup’s existing backers were expected to make follow-on investments in the round, which was projected to raise US$150 million, according to DSA.

However, Abu Dhabi-based 42xfund ended up being the anchor investor, catapulting eFishery into unicorn status.

AI firm Group 42, which is also based in Abu Dhabi, runs 42xfund. The fund’s notable investments are in Chinese firms ByteDance and JD Industrials.

EFishery, which provides solutions to fish and shrimp farmers, was valued at US$1.2 billion after successfully raising US$200 million via the series D. Retirement Fund, a Malaysian government-owned entity that handles the pensions of civil servants, is also an investor in that latest round.