Prefer, a Singapore-based food tech startup using fermentation to create affordable and sustainable flavors and ingredients, announced Wednesday an oversubscribed $4.2 million fundraising round alongside the commercial launch of its new products: soluble coffee and cocoa powders.
The company also announced its first commercial partnerships for international expansion with Ajinomoto Co., (Thailand) Ltd and The Coffee Ferm in Thailand and Australia, respectively.
Prefer said in a statement that this funding round brings its total equity raised to $6.2 million.
The lead investors are At One Ventures and Chancery Hill Capital, with participation from existing investor, Forge Ventures.
The firm plans to scale its pilot production facility through toll manufacturers in key markets, deepen research and development (R&D) on cocoa flavor development, and expand global partnerships with a continued focus in Asia.
Made from food manufacturing byproducts such as rice and soy, Prefer’s flavors are developed using a proprietary fermentation and roasting process.
The company supplies its flavors and ingredients to fast-moving consumer goods (FMCG) brands, food manufacturers, private label retailers, and flavor houses, offering affordable ingredients that replicate the taste and functionality of coffee and cocoa at a fraction of the carbon footprint.
According to its life cycle analysis, Prefer’s coffee has up to 85 percent lower emissions and is 50% more affordable than the current market prices of traditional Arabica.
The firm also invites coffee and cocoa companies to connect and sample the ingredients via their website, offering partners a commercially proven ingredient that drives cost savings, strengthens supply chain resilience, and supports the planet.
“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 Chief Executive Officer of Prefer.
The firm recently commercialized its coffee products through foodservice channels, collaborating with Melvados, a Singaporean food business.
The company also announced its first international commercial partnerships.
In Thailand, Prefer is working with Ajinomoto Co., (Thailand) Ltd. to develop sustainable new innovations under coffee beverage aligned with the “Eat Well, Live Well” lifestyle.
In Australia and New Zealand, the company has partnered with The Coffee Ferm, which will license Prefer’s flavor IP to scale local manufacturing and distribution.
“We’re in the early stages of a food system transformation, one that decouples beloved consumer products from environmentally harmful supply chains,” said Helen Lin, Partner at At One Ventures and board member at Prefer.