eFishery becomes Indonesia’s latest unicorn with 108 million in Series D funding

Indonesian aquatic technology company eFishery has become its country’s latest unicorn after raising SGD 108 million in a Series D funding round led by the United Arab Emirates (UAE)-based G42 Global Expansion Fund (42XFund). According to regulatory filings, eFishery could even raise up to USD 200 million in additional funding.

42XFund contributed SGD 1 million to the round, while SoftBank Vision Fund II contributed nearly SGD 5 million, according to documents filed by eFishery with Singapore’s Accounting and Corporate Regulatory Authority (ACRA). Meanwhile, Northstar Group, a leading Southeast Asian private equity fund, invested SGD 3 million.

The company, which aims to have one million fish farmers as members of its “digital cooperative” by 2025, has more than 6,000 fish and shrimp farmers from 250 cities in Indonesia in its portfolio. According to eFishery’s latest impact report, its platform can increase fish farmers’ income by up to 45% and the total carbon footprint of their production is 92% lower than that of the meat industry.

The term unicorn refers to a private startup company with a value of more than USD 1 billion. It is commonly used in the venture capital industry. The term was first popularized by Aileen Lee (founder of Cowboy Ventures in Palo Alto) in 2013.

Innovations in aquaculture

Founded in 2013, eFishery is Asia’s first aquaculture technology startup developing innovations in the field of aquaculture. As explained by the company, eFishery has disrupted traditional fish farming methods and provides cutting-edge solutions in the aquaculture ecosystem by offering a onestop platform that provides access to feed, finance and markets to fish and shrimp farmers.

eFishery aims to build an aquaculture ecosystem in Indonesia that is not only profitable, but also sustainable for fish farmers, buyers and all stakeholders, according to its management.

Since its inception in 2013, when it launched its digitally controlled “smart feeder” for fish and shrimp farmers, eFishery has expanded its offering to include an “end-to-end” digital system for managing fish and shrimp farming operations, as well as an online marketplace and access to financial services.

Linking producers directly to buyers

The services offered by eFishery aim to help fish farmers increase their productivity and, at the same time, create more sustainable practices for both the environment and the farmers themselves. Specifically, eFishery seeks to link more fish and shrimp farmers directly with buyers, giving them more competitive options when it comes to selling their products.

Indonesia is one of the world’s largest aquaculture producers. However, the country’s aquaculture industry has historically been linked to mangrove deforestation and inadequate waste management practices, among other problems.

Us

Innovasea, the global leader in technological advanced aquatic solutions for aquaculture and fish tracking, announced that it has successfully helped Petros secures government approval for a 3,000 ton open ocean fish farm 8 kilometers off the southwest coast of Aruba.

“We’re thrilled to be partnering with Petros to create Aruba’s first ocean-based fish farm,” said Langley Gace, Innovasea’s senior vice president of business development. “This is an important project for the country and the region and we’re confident that our open ocean expertise and our proven egg-to-harvest approach to fish farming will help ensure its success.”

Innovasea performed extensive consulting and site selection work for Petros, which plans to use Innovasea’s submersible SeaStations and other technologies to raise Northern Red Snapper.

Future growth will target 9,000 metric tons

Built over three phases, the farm will produce its fish in a sustainable, secure and traceable manner. Once complete, it will feature 16 SeaStations and a land-based hatchery and employ close to 100 local team members. Future growth will target 9,000 metric tons of biomass, with goals to diversify species and expand into seaweed cultivation.

“We are fortunate to have a strong partner in Innovasea, an industry leader in open ocean farming with proven experience with warm water species such as Red Snapper” said Gunnar Bracelly, Petros’ founder and president. “Being able to rely on Innovasea’s full-service capabilities enable our team to focus on implementing the bold vision of diversifying the Aruban economy and becoming the catalyst for an aquaculture revolution throughout the Caribbean region.”

SeaStations fit perfectly on the island

Creating a vibrant aquaculture industry will help Aruba diversify its economy, which relies heavily on tourism, and strengthen its food security profile. The submersible SeaStation is ideal because it is invisible to tourists when submerged.

“SeaStations spend most of their time fully submerged, so they’re a great fit for a place like Aruba where it’s important to preserve beautiful views for vacationers,” said Gace.

Northern red snapper is a high value species with strong demand in the United States (US), but a limited and seasonal supply that comes entirely from the fishing industry.

Petros will also market its fish to the many cruise ships that dock in Aruba. This will support the cruise industry’s effort to reduce its carbon footprint by sourcing fresh seafood from local sources.

Passion for research and development

As they say, Innovasea is a company fueled by leading-edge technology and a passion for research and development.

“Innovasea is revolutionizing aquaculture and advancing the science of fish tracking to make our oceans and freshwater ecosystems sustainable for future generations.”

With more than 275 employees worldwide, they provide full end-toend solutions for fish farming and aquatic species research, including quality equipment that’s efficient and built to last, expert consulting services, and innovative platforms and products that deliver unrivaled data, information and insights.

“From land to the open ocean,” Innovasea provides aquatic solutions that hold up in the most challenging conditions. They assure me that this requires more than just delivering the world’s most advanced aquatic technologies: “It means continuously applying knowledge in science and engineering, fish tracking and farm operations to develop the ideal systems for each site. It means working shoulder-to-shoulder with customers to cultivate and protect fish populations. And it means consciously designing products and services to give back more to nature than we take. Day in and day out, we are driven by a commitment to make our ocean and freshwater ecosystems sustainable for future generations.”

Looking for additional investors

Petros reported that is looking for additional investors for the project and is open to both equity and debt financing for the initial stage. For more information, is possible to contact Gunnar Bracelly at gunnar@sustimar.com.

On June 12, representatives Kat Cammack, Ed Case and Mike Ezell reintroduced in the 118th Congress of the United States (US), the bipartisan Advancing the Quality and Understanding of American Aquaculture (AQUAA) Act in a new attempt to obtain its approval. The platform Stronger America Through Seafood (SATS) “commends Representatives for helping educate other Members of Congress about the need for federal legislation to establish a federal permitting process for offshore aquaculture in the US,” said Drue Banta Winters, Campaign Manager of the organization. The House bill is companion legislation to the AQUAA Act introduced by US Senators Roger Wicker and Brian Schatz last week. Earlier this year, the White House issued its Ocean Climate Action Plan, which calls for the expansion of sustainable US aquaculture production.

As the platform SATS reported, the bicameral AQUAA Act would establish National Standards for offshore aquaculture and clarify a regulatory system for the farming of fish in the US exclusive economic zone (EEZ). The bill would also establish a research and technology grant program to fund innovative research and extension services focused on improving and advancing sustainable domestic aquaculture. “Establishing a robust American aquaculture industry would help address many of the pressing issues we face today,” said Banta Winters. “From strengthening the seafood supply chain, to creating new jobs in American communities, and helping grow more sustainable protein here at home as climate change threatens wild stocks, offshore aquaculture would provide many benefits for our nation.” For her part, Cammack assured that “aquaculture should be one of our priorities as we grow our focus on food security. In Florida, we’ve seen the benefits of aquaculture firsthand— breeding, raising, and harvesting shellfish, fish, and aquatic plants in our waters. We’ve demonstrated that it’s possible to provide healthy, fresh food that’s produced sustainably at home to support our growing population,” said Cammack.

US ranks only 17th in aquaculture production

According to SATS, due to inefficient federal permitting processes, the US ranks only 17th in aquaculture production and imports up to 80% of the seafood we consume from overseas. Until federal legislation is passed, the growth of the American offshore aquaculture industry will continue to be hindered due to a lack of regulatory certainty for investors. An expanded aquaculture industry in the US would create a plethora of jobs in the farming states that grow the fish feed; in coastal states with working waterfronts; in labs and research facilities; and in retail. Locally grown seafood would feed a growing population that is projected to reach 8.5 billion by 2030.

A confusing and often contradicting regulatory scheme

The member of the US House of Representatives from Florida added that her colleagues share the same enthusiasm “for growing our domestic aquaculture industries and improving our infrastructure to feed the American population.”

In that sense, Case, the Member of the US House of Representatives from Hawaii said: “For decades, we have pursued the promise of open ocean aquaculture as part of our larger goal of sustainable management of our marine resources. States like Hawai’i have led the way in developing sustainable and safe aquaculture in state waters, but development in federal waters throughout our exclusive economic zone has been hampered by a confusing and often contradicting regulatory scheme that does not sufficiently protect our marine environment”. “Our bipartisan, bicameral AQUAA Act would provide a consistent, efficient regulatory umbrella to help fully unlock the potential of open ocean aquaculture in a sustainable, environmentally sensitive and science-based way and grow economies for coastal states and food security for the nation,” he added.

AQUAA Act will create blue economy jobs

Finally, Ezell, Member of the US House of Representatives from Mississippi, said: “In order to meet the demand for fresh, American seafood, we must find ways to increase aquaculture production across our coastal states and communities. “I’m proud to cosponsor the AQUAA Act that will create blue economy jobs along the Gulf Coast while protecting our most precious resources.”

It’s important to remember that Stronger America Through Seafood advocates for federal policies and regulations that help secure a stronger America through increased US production of healthful, sustainable, and affordable seafood.