Singapore-based food technology company Prefer has secured $4.2 million in an oversubscribed Pre-A funding round while launching commercial-grade soluble coffee and cocoa powders derived from agricultural waste. The financing brings the startup’s total equity raised to $6.2 million as it expands operations across Asia-Pacific markets.
At One Ventures and Chancery Hill Capital co-led the funding round, with continued backing from existing investor Forge Ventures. The capital injection coincides with Prefer’s product commercialization and new international partnerships spanning Thailand, Australia, and New Zealand.
Fermentation Technology Creates Coffee Alternatives
The company transforms food manufacturing byproducts including rice and soy into coffee and cocoa substitutes through proprietary fermentation and roasting processes. These ingredients target food manufacturers, consumer goods brands, private label retailers, and flavor houses seeking cost-effective alternatives to traditional commodities.
Prefer’s life cycle analysis indicates its coffee products generate up to 85% fewer emissions while costing 50% less than conventional Arabica beans. The startup supplies ingredients that replicate taste profiles and functionality of coffee and cocoa without the associated environmental impact of traditional supply chains.
“With the support of our new partners, the quality of our new products, and the grit of this team, we’re in a unique position to ensure coffee and cocoa are accessible to the masses while respecting our planet” says Jake Berber, Co-Founder & CEO.
Strategic Partnerships Drive International Expansion
The startup has established its first major international commercial agreements to accelerate market penetration. In Thailand, Prefer collaborates with Ajinomoto Co. (Thailand) Ltd. to develop sustainable coffee beverage innovations aligned with health-conscious consumer trends.
The Australia and New Zealand expansion involves licensing Prefer’s flavor intellectual property to The Coffee Ferm for local manufacturing and distribution. This partnership model allows the company to scale production capacity without significant capital investment in overseas facilities.
Domestically, Prefer has already begun commercial sales through foodservice channels via partnership with Singaporean food business Melvados, demonstrating market validation for its fermented coffee products.
Market Positioning and Investment Rationale
Helen Lin, Partner at At One Ventures and Prefer board member, characterized the investment as part of broader food system transformation efforts. “We’re in the early stages of a food system transformation, one that decouples beloved consumer products from environmentally harmful supply chains” Lin stated.
The funding arrives as food manufacturers face increasing pressure to reduce environmental impact while managing volatile commodity prices. Prefer’s approach addresses both challenges by creating consistent supply alternatives from readily available agricultural waste streams.
Scaling Production and R&D Focus
The company plans to expand its pilot production capabilities through toll manufacturing partnerships in key markets rather than building owned facilities. This strategy allows rapid geographic expansion while minimizing capital requirements and operational complexity.
Research and development efforts will concentrate on advancing cocoa flavor profiles to match the commercial success achieved with coffee products. The startup invites potential partners to sample ingredients through its website platform, emphasizing cost savings, supply chain resilience, and environmental benefits.
Prefer’s expansion strategy focuses primarily on Asian markets where demand for sustainable food ingredients continues growing among manufacturers serving environmentally conscious consumers.