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[JAKARTA] Indonesian agritech giant, eFishery, is taking a measured approach to its much-anticipated public listing, even though it has been considering going public since last year.

Its CEO Gibran Huzaifah said on Wednesday (Oct 23) that despite the startup’s significant leap into profitability and rapid expansion into India, it is choosing to bide its time.

An initial public offering (IPO) remains a key objective, he said, but stressed that the timing would depend on the company’s overall readiness, including its financial health and operational stability, rather than on riding market trends.

The 35-year-old entrepreneur said: “An IPO is essential for us to provide an exit for our shareholders.”

But he noted that the timing of an IPO must align with market conditions. “The first part of the journey is ensuring the company is ready internally – strong financials and governance. The second part is waiting for the right market conditions. It shouldn’t be the other way around.”

Huzaifah was speaking during a panel discussion on the first day of the Tech In Asia Conference, co-organised by The Business Times, in Jakarta. The 40-minute session was moderated by SPH Media’s deputy CEO, Kuek Yu Chuang.

Plans by eFishery, a Temasek-backed company, to go public gained traction following the successful raising of US$200 million in Series D funding last year, which boosted the company’s valuation to US$1.4 billion.

The infusion of funds underscores the immense potential of South-east Asia’s largest economy in revolutionising the agricultural sector through digitalisation, a transformation that flourished during the pandemic. 

Bandung-based eFishery, in its 11th year of business, provides fish and shrimp farmers across the archipelago with access to essential technology, feed, financing and market opportunities.

While many tech outfits have faced funding challenges and layoffs, this startup is among Indonesia’s aquaculture startups that have managed to thrive, attracting millions of dollars into the ecosystem in the last three years.

Huzaifah pointed out that the excitement around going public is understandable, but that the move comes with significant challenges that should not be underestimated.

“I know there has been a lot of anticipation, but we want to ensure that going public isn’t just an exit for founders or investors. I can definitely envision myself continuing this journey for the next 10 to 20 years, and making a lasting impact.”

After solidifying its position in the domestic market, the company expanded its presence in India last year and achieved positive earnings before interest, taxes, depreciation and amortisation in the space of a year.

Huzaifah said eFishery’s success in both India and Indonesia stems from its providing end-to-end services for farmers, including technology-based tools such as artificial intelligence and the Internet of Things to enhance productivity and efficiency.

“We replicated our approach from Indonesia in India. But we hired local Indian employees who understood the culture and market, while also bringing in Indonesian workers with experience in this field.”

The startup plans to focus on strengthening its supply chain over the next five years to create sustainable-profit pathways. eFishery aims to mimic the strategies of protein industries, such as the poultry industry, by providing ready-to-cook or ready-to-eat products.

“Our current market penetration is only 10 to 13 per cent. We want to improve this,” he added.

EFishery also plans to expand its export markets beyond the US to include China, Japan, South Korea and the Middle East. The company is targeting the European market by 2026, as it navigates the necessary licensing and certification processes.

The company’s 2023 impact report said the startup contributed 3.4 trillion rupiah (S$287.2 million), or approximately 1.55 per cent, to the gross domestic product of Indonesia’s aquaculture sector in 2022. It has collaborated with over 70,000 fish and shrimp farmers, groups and cooperatives.