eFishery Scandal Continues To Weigh On Startup Fundraising

The eFishery scandal continues to affect Indonesian startup fundraising, according to a report describing heightened investor caution and tougher checks. Astro’s founders said they experienced those effects while seeking new capital.

IDNFinancials, citing a thestar.com.my report dated December 19, described lost trust after manipulated financial statements at eFishery. Investors delayed funding and tightened due diligence, while founders placed greater emphasis on efficiency and revenue.

eFishery Scandal Continues To Affect Fundraising

The report on investor caution described difficulties facing Vincent Tjendra and Marcella Moniaga, founders of quick-commerce startup Astro. They struggled to raise funding amid a global downturn and increased caution following the scandal.

In September, Amazon.com Inc. invested US$51.9 million in Astro, according to the report. Astro’s valuation fell by around 30% compared with its previous round.

Tjendra described the investment as important for long-term sustainability, despite the lower valuation. He said the company was building for the long term and considered a lower funding round manageable.

The report said eFishery, once valued at US$1.4 billion, had falsified revenue and profit reports. Around US$300 million of investor funds were reported missing.

Police detained founder Gibran Huzaifah and two former executives, the report said. It described the legal process as having moved to the prosecutor’s office.

Grit Daily’s related reporting examined Malaysia’s pension fund exposure to eFishery. The Indonesian fundraising account concerns the wider effect on startup investment rather than that fund’s recovery efforts.

Investors Placed Greater Weight On Governance

Rama Mamuaya attributed slower investment decisions primarily to eroding trust. Mamuaya is a DSX Ventures partner and vice-chair of the Indonesian Venture Capital Association for Startups.

East Ventures partner Sang Han said investment standards had become much higher. Investors increasingly emphasized governance, financial transparency and realistic valuations, according to Han.

The report also described institutional investors becoming entangled in another agritech case. In September, senior MDI and BRI Ventures officials were detained over alleged misconduct linked to TaniHub investments.

No court ruling had been issued in that case, according to the account. The allegations had nevertheless further dampened market sentiment, the report said.

For broader coverage of investor risks, Grit Daily reported on research into startup fraud. Separate reporting examines allegations about Kalder’s fundraising.

Founders Turned Toward Efficiency And Revenue

Under funding pressure, many founders shifted away from aggressive growth toward operational discipline, the report said. Their priorities included efficiency, revenue and stronger understanding of their markets.

Withers partner Joel Shen described the period as part of the industry’s maturation. He said solid startups could still raise capital despite declining funding, with valuations becoming more rational.

The report also described an October change intended to encourage foreign capital inflows. The Ministry of Investment reduced minimum paid-up capital from IDR 10 billion to IDR 2.5 billion per business activity.

With Indonesia’s middle class shrinking, some startups targeted lower-income consumers with more affordable products. Jago Coffee’s low-cost mobile coffee carts illustrated that approach, with CEO Yoshua Tanu describing a market of minimum-wage earners.