Indonesian aquaculture startup eFishery raises $200M at unicorn valuation
eFishery secures $200 million in Series D financing, emerges as the pioneer in aquaculture startups to achieve a remarkable $1 billion valuation.
eFishery, an aquaculture startup from Indonesia, recently announced that it has secured $200 million in funding through a Series D round. This achievement has made eFishery the first startup in the global aquaculture industry to surpass a valuation of $1 billion. The funding round was led by 42XFund, based in Abu Dhabi, and included participation from Kumpulan Wang Persaraan (Diperbadankan), which is Malaysia's largest public sector pension fund, responsAbility, a Swiss asset manager, and 500 Global. Notably, existing investors like Northstar, Temasek, and SoftBank also took part in the round. Additionally, eFishery enlisted the exclusive financial advice of Goldman Sachs.
eFishery, established in 2013 by CEO Gibran Huzaifah, is located in Bandung, West Java. The organization focuses on creating an intelligent feeding system for fisheries, with the goal of enhancing feeding practices and increasing overall productivity. Through the utilization of Internet of Things (IoT) technology, the system automatically dispenses feed to fish and shrimp, while empowering farmers to remotely supervise and control their ponds through a mobile app. This groundbreaking solution effectively tackles the obstacles experienced by fish farmers, including inconsistent fish sizes resulting from manual feeding and the detrimental effects of excessive feeding on water quality.
The importance of eFishery's impact on Indonesia's fish farming industry is emphasized by a research study carried out by the Demographic Institute at the University of Indonesia (LDUI). The study reveals that eFishery's contribution to Indonesia's total economic output in the aquaculture sector in 2022 amounted to 1.55%. This is particularly remarkable as Indonesia holds the second position worldwide in terms of fishing and fish farming, with China being the only country ahead. According to data from the World Atlas, Indonesia yields around 5.8 million tons of fish each year.
At present, eFishery caters to 70,000 fish and shrimp cultivators in 280 urban areas throughout Indonesia. Alongside its intelligent feed dispenser, the organization's platform incorporates marketplaces where farmers can sell their fish and shrimp feed, as well as fresh fish and shrimp products to business-to-business customers. Additionally, they offer customized financial products specifically designed for fish farmers. The aim of eFishery is to extend its influence to encompass one million aquaculture ponds in Indonesia by 2025, and eventually venture into international markets.
Gibran Huzaifah embarked on his venture into the aquaculture field when he initiated a catfish farming enterprise during his college years. He swiftly comprehended the significance of effectively managing the feed, as it constituted a substantial 80% of the overall production expenses. Nevertheless, numerous farmers continued to depend on manual feeding techniques, consequently leading to irregular fish sizes. Huzaifah acknowledged the urgent requirement for digital revolution within the agriculture and aquaculture domains, which had witnessed limited technological progress in contrast to other sectors.
In the face of initial opposition from fish breeders, Huzaifah managed to successfully implement eFishery's intelligent feeding system by enlightening them about the advantages of technology. He stressed the importance of valuing local participants and adjusting to various business customs throughout the 34 provinces of Indonesia. Developing partnerships with intermediaries and involving them as regional collaborators turned out to be a fruitful approach for eFishery. By tapping into their knowledge of the area, connections, and resources, the company managed to overcome obstacles and establish a powerful presence in the aquaculture sector.
The aquaculture sector in Indonesia remains largely unexplored, with only 7% to 9% of its maximum capacity being utilized. One of the main obstacles is the lack of cohesion caused by differing business methods in various provinces. Huzaifah asserts that cooperation among communities, the government, and institutions is pivotal in unleashing this potential. To bolster Indonesia’s aquaculture industry and boost fish exports, it is crucial to enhance the infrastructure of fishery operations, encourage sustainable aquaculture practices, and actively participate in trade negotiations to attract more buyers.
eFishery has recently secured additional funding, which will allow them to continue growing their operations and advance their goal of fostering a sustainable and all-encompassing economy. As part of their plan to expand globally, the company intends to export shrimp that can be fully traced and are free from antibiotics. By providing innovative solutions and a comprehensive range of aquaculture products, eFishery has made a substantial influence on the aquatech sector and has positively impacted small farmers in Indonesia. The investment received from 42XFund and other backers will undoubtedly play a crucial role in the company's ongoing expansion and achievements, not only in Indonesia but also in other regions.
