Foodtech startup Prefer raises oversubscribed $4.2 M Pre-A to fuel international expansion
Along with the commercial launch of its new products, soluble coffee and cocoa powders, Prefer, a Singapore-based food tech startup that uses fermentation to create sustainable and reasonably priced flavors and ingredients, announced on Wednesday that its $4.2 million fundraising round was oversubscribed.
Additionally, the business announced its first international business alliances with Ajinomoto Co., (Thailand) Ltd. in Thailand and The Coffee Ferm in Australia.
This funding round brings the total amount of equity raised to $6.2 million, according to a statement from Prefer.
At One Ventures and Chancery Hill Capital are the primary investors, with Forge Ventures, an existing investor, also participating.
The company intends to increase research and development (R&D) on cocoa flavor development, scale its pilot production facility through toll manufacturers in strategic markets, and broaden international alliances while maintaining an emphasis on Asia.
Prefer’s flavors are created using a proprietary fermentation and roasting process and are made from food manufacturing byproducts like rice and soy.
The company provides inexpensive ingredients that mimic the flavor and functionality of coffee and cocoa at a fraction of the carbon footprint to food manufacturers, private label retailers, flavor houses, and fast-moving consumer goods (FMCG) brands.
Prefer’s coffee is 50% less expensive than traditional Arabica coffee on the market today and has up to 85% fewer emissions, per its life cycle analysis.
By providing partners with a commercially proven ingredient that reduces costs, boosts supply chain resilience, and benefits the environment, the company also invites coffee and cocoa companies to connect and sample the ingredients through their website.
“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.
In partnership with Melvados, a Singaporean food company, the company recently began selling its coffee products through foodservice channels.
The business also revealed its first foreign business alliances.
Ajinomoto Co., (Thailand) Ltd. and Prefer are collaborating in Thailand to create sustainable new coffee beverage innovations that support the “Eat Well, Live Well” philosophy.
The business has teamed up with The Coffee Ferm in Australia and New Zealand, which will license Prefer’s flavor intellectual property in order to expand local production 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.
