Singapore-based food tech startup Prefer has raised $4.2 million in Pre-Series A funding as it rolls out its next-generation coffee and cocoa substitutes. The company aims to reshape how we consume two of the world’s most beloved beverages by offering alternatives that are dramatically more sustainable and affordable.

Founded in 2022 by Jake Berber and Ding Jie Tan, Prefer has developed a fermentation-based process that turns food manufacturing byproducts like rice and soy into ingredients that mimic the flavor and function of conventional coffee and cocoa. This innovation could mark a breakthrough in both climate-friendly food production and circular economy practices.

Coffee Without the Carbon Cost

Prefer’s fermentation and roasting process is designed to produce ingredients that taste and function like Arabica coffee and cocoa powder, but with a fraction of the environmental impact. According to the company, its coffee alternative delivers up to 85 percent lower carbon emissions and comes in at half the cost of traditionally grown Arabica beans.

These savings are not just environmental. Prefer’s solution also offers supply chain resilience and cost efficiency for large-scale buyers. Its ingredients are now being supplied to FMCG companies, food manufacturers, private label brands, and flavor houses seeking to diversify their sourcing while lowering emissions.

Commercial Expansion Across Asia-Pacific

With the funding round now closed, Prefer has also announced its first international partnerships. In Thailand, the company is working with food giant Ajinomoto to co-develop sustainable beverage solutions aligned with health-conscious lifestyles. In Australia and New Zealand, Prefer has partnered with The Coffee Ferm, a regional licensee that will use its flavor IP to scale local manufacturing and distribution of the coffee alternative.

These collaborations mark the start of Prefer’s global push. The company is now preparing to scale its pilot production using toll manufacturing partnerships in key markets. Additional focus areas include advancing flavor R&D for cocoa-based applications and securing further international partnerships, particularly within Asia.

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Backing from Climate-Driven Investors

The Pre-Series A round was co-led by At One Ventures and Chancery Hill Capital, with ongoing support from Forge Ventures. This brings Prefer’s total equity raised to $6.2 million to date.

Helen Lin, partner at At One Ventures and a board member at Prefer, emphasized that this is part of a broader shift in food innovation. “We’re in the early stages of a food system transformation,” she said, “one that decouples beloved consumer products from environmentally harmful supply chains.”

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Reimagining Coffee and Cocoa for a New Era

Co-founder and CEO Jake Berber highlighted that the company is motivated by a mission to protect the planet while keeping iconic flavors within reach. “With the support of our new partners, the quality of our new products, and the grit of this team,” he said, “we’re in a unique position to ensure coffee and cocoa are accessible to the masses while respecting our planet.”

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