Singapore-based food tech startup Prefer has secured US$4.2 million in an oversubscribed funding round. This brings the total amount raised by the company to US$6.2 million.
The round was led by At One Ventures and Chancery Hill Capital, with participation from existing investor Forge Ventures. The news comes as Prefer announces the commercial launch of its new soluble coffee and cocoa powders, made using a proprietary precision fermentation process.
Prefer’s products are made from upcycled food manufacturing byproducts such as rice and soy, which are fermented and roasted. This replicates the taste and functionality of coffee and cocoa with a much lower carbon footprint. According to the startup’s life cycle analysis, its coffee alternative generates up to 85% fewer emissions and is 50% more affordable than conventional Arabica.
Commercial partnerships
Prefer supplies its products to FMCG brands, food manufacturers, private label retailers, and flavour houses. The startup recently commercialised its coffee products through food service channels, in collaboration with Singaporean food business Melvados.
Prefer has also just announced its first commercial partnerships for international expansion. In Thailand, the company will work with Ajinomoto Co. to develop sustainable coffee innovations aligned with the “Eat Well, Live Well” lifestyle. In Australia and New Zealand, Prefer has partnered with Coffee Ferm, which will license Prefer’s flavour IP to scale local manufacturing and distribution.
The startup now plans to scale its pilot production facility through toll manufacturers in key markets, while also conducting more R&D on cocoa flavour development and expanding its global partnerships with a focus on Asia.
Ensuring coffee and cocoa remain accessible
Prefer previously raised $2 million in 2024 to scale up the production of its bean-free coffee. At the time, the company said the product could help to combat rising coffee prices, providing an alternative that is compatible with regular espresso machines. Additionally, Prefer explained that the caffeine content of the coffee is customisable, providing more options for consumers.
“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,” said Jake Berber, co-founder and CEO of Prefer.
