The eFishery Fiasco: A Startup Dream Turned Accounting Nightmare

When Indonesian aquaculture startup eFishery announced it had raised $200 million in a Series D round led by Abu Dhabi’s 42XFund, it was hailed as a major Southeast Asian success story. The company, known for revolutionizing fish farming through IoT feeding tech and fintech for fish farmers, was riding high on a $1.3 billion valuation. But in early 2024, the tides turned.

According to reporting from DealStreetAsia and Tech in Asia (Jan–Feb 2024), eFishery’s investors discovered significant financial irregularities, particularly around inventory and accounts receivable. What was initially flagged as a simple mismatch turned into a serious internal probe. At least Rp 100 billion (~USD 6.4 million) was allegedly unaccounted for, leading to the suspension of several employees and delayed financial reporting.

While the final outcome of the investigation is still pending, the damage is done. eFishery’s trust with investors—and potentially its IPO timeline—has taken a hit.

So, what happened?

Let’s unpack this, and more importantly, let’s talk about why fractional CFO services, like those provided by WOWSGlobal, are no longer a “nice-to-have” but a mission-critical function for scaling startups across Southeast Asia and the Middle East.

eFishery’s Red Flags: A Breakdown

eFishery had all the signs of a booming unicorn:

• Impressive growth and social impact (helping over 70,000 fish farmers)

• A suite of offerings including smart feeders, B2B fish trading, and embedded fintech

• Strong investor backing (Sequoia, SoftBank, 42XFund, etc.)

But under the hood, a few things went sideways:

1. Lack of Real-Time Financial Controls

With operations expanding rapidly across regions and product lines, it appears eFishery lacked centralized oversight of cash flows, AR/AP cycles, and inventory.

Key Quote (Tech in Asia, Feb 2024):

“A former employee said financial reporting was often reactive, not strategic.”

2. Burn Rate Oversight

Reports suggest the company was burning cash aggressively—acquiring new users through subsidies and credit—without clear payback periods or unit economics validation.

3. Inadequate Finance Leadership

eFishery, like many startups, didn’t prioritize financial leadership early. A CFO wasn’t brought in until very late in their scaling journey. The internal finance team was likely under-resourced, overstretched, and lacking systems-level thinking.

Why This Isn’t Just an eFishery Problem

Across SEA and MENA, we’ve seen similar cautionary tales play out:

• Zilingo’s governance crisis

• Bykea’s delayed funding due to compliance issues

• Souq’s exit drama pre-Amazon acquisition

What connects these stories? Founders building rocket ships without installing proper dashboards.

The Case for Fractional CFOs 

At WOWS Global, we work with startups from Seed to Series C, and the one common issue we fix over and over is this:

“You can’t scale what you can’t measure.”

A Fractional CFO isn’t just a part-time accountant. It’s a strategic finance leader embedded in your startup, typically 1–2 days per week, doing the following:

1. Real-Time Financial Dashboards

Implementing tools to monitor burn, runway, margins, and CAC/LTV in real-time.

2. Investor-Grade Reporting

Preparing monthly and quarterly reports that match VC expectations and support future due diligence or IPO prep.

3. Scenario Planning & Cash Flow Modeling

Running multiple funding scenarios, planning for downturns, and answering the “What if our main buyer vanishes?” question before it becomes real.

4. Governance & Risk Management

Identifying financial blind spots early—be it procurement fraud, delayed collections, or unapproved expenses.

5. Board & Investor Communication

Translating startup chaos into investor-friendly language that builds trust and unlocks capital faster.

Real-World Use Case: From Chaos to Clarity

A fintech client in the Philippines (name withheld) came to WOWS after a $10M Series A. They had 12 months of runway but no idea where it was going. Within 60 days, our fractional CFO:

• Cleaned up their books

• Built a rolling 13-week cash forecast

• Created a budget vs. actual tracking system

• Saved them $400K/year in unnecessary expenses

By Month 3, they had investor-ready reports that helped them close a bridge round in 30 days.

Startups, Listen Up: Don’t Wait Until the Fire

The real tragedy of eFishery isn’t that something went wrong—it’s that it could have been avoided. The startup ecosystem in Southeast Asia is maturing. As more founders raise larger rounds, the expectation of financial rigor will only grow.

Fractional CFOs cost a fraction of a full-time hire, bring in battle-tested experience, and help startups avoid headline-grabbing blowups.

At WOWSGlobal, we don’t just help you fundraise—we help you build companies that last.

Key Takeaways for Founders:

• Financial controls must evolve with your startup.
• You don’t need a $200K/year CFO—fractional leadership works.
• Don’t wait for your Series D to clean up your books. Start now.
• Impress investors with clarity, not chaos.

Let’s Talk Numbers

Curious about what a fractional CFO could do for your startup? Book a free consult with WOWSGlobal’s finance team today.

We’ll audit your current setup and give you a no-BS roadmap to get investor-ready.