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By Agroempresario.com
Singapore-based food tech startup Prefer has taken another decisive step in reshaping the coffee and cocoa industry. The company announced the launch of its bean-free soluble coffee and cocoa powders, along with the closure of a $4.2 million funding round led by At One Ventures and Chancery Hill Ventures, with participation from Forge Ventures. This latest investment raises Prefer’s total funding to $6.2 million and positions it to expand production capacity, deepen research and development, and secure strategic commercial partnerships in the Asia-Pacific region.
The funding announcement coincides with two major commercial agreements. Prefer has partnered with Ajinomoto, the market leader in ready-to-drink coffee in Thailand, to co-develop new coffee beverages using its bean-free technology. In addition, the startup signed a licensing deal with The Coffee Ferm, a new entity that will produce Prefer’s beanless coffee for distribution in Australia and New Zealand.
“These partnerships are critical for scaling our impact,” said Jake Berber, cofounder and CEO of Prefer. “This funding enables us to expand production, strengthen our technology moat, and partner with food and beverage companies. We’ll also deepen R&D into cocoa flavor development. The vision is to use our fermentation technology to create a portfolio of flavors and ingredients in a more affordable and sustainable way.”
Helen Lin, partner at At One Ventures, underscored the investment’s purpose: “Our investment in Prefer reflects both the urgency of reducing our food system’s agricultural footprint and our conviction in this team’s ability to deliver a sensory-equivalent experience with radically lower environmental impact, all while driving cost savings for customers.”
Founded in 2022 by Berber and Ding Jie Tan (CTO), Prefer uses a proprietary fermentation and roasting process to create coffee and cocoa powders without the need for beans. While the company has released ready-to-drink products in Singapore to showcase its technology, its main focus is supplying B2B ingredients to manufacturers seeking to replicate the flavor, aroma, and functionality of traditional coffee and cocoa—without the price volatility and supply risks.
Prefer’s hybrid model allows coffee brands to blend up to 40% of its product with conventional coffee, preserving taste while reducing costs and environmental impact. “Prefer is best used as a coffee extender,” explained Berber. “Blending up to 40% Prefer with 60% coffee delivers the full coffee experience, stretches supply, lowers costs, and cuts emissions.”
The company’s product range includes a ground coffee alternative for use in standard coffee machines and a soluble coffee designed for instant coffee, ready-to-drink beverages, and other formulations. According to Berber, soluble products are critical because they match the consumption habits of mass markets. “Of the $15 million worth of MOUs we have secured, around $10 million depended on us developing a soluble powder,” he said.
Unlike some alternative coffee startups that rely on complex formulations, Prefer uses a minimal ingredients list. Its bean-free coffee is made from okara (a tofu by-product), broken rice, and select microbial cultures. The distinct flavors come from carefully controlled fermentation and roasting parameters.
“We designed this technology for B2B scalability,” Berber explained. “It doesn’t require specialized equipment, which means we can scale production with toll manufacturers or license our IP so other food companies can produce it themselves.”
The company has also developed an allergen-free soy-free version of its coffee alternative, and is experimenting with incorporating spent coffee grounds into its formulations—offering an upcycling pathway for large coffee brands.
Prefer’s fermentation technology is not limited to coffee. The same core process can be adapted to recreate other high-value flavors threatened by climate change and supply constraints, such as cocoa, vanilla, and hazelnut. “The sustainability story is a bonus,” Berber noted. “We’ve focused on price and taste—exactly what big food companies are looking for. Our process gives them a way to keep prices down while maintaining quality.”
The startup is also developing a highly concentrated soluble coffee that could be listed in ingredient panels as “natural flavor,” offering food manufacturers new options for product formulation.
The coffee and cocoa industries are under growing strain from rising demand, extreme weather, and disease outbreaks that reduce crop yields. As a result, prices have surged, putting pressure on both manufacturers and consumers. Prefer’s approach offers a buffer against these fluctuations by reducing dependence on agricultural commodities without compromising consumer experience.
“We’re not here to replace coffee,” Berber emphasized. “We want to make it more accessible. Rising prices are pushing coffee out of reach for many, and we believe hybrid products created in partnership with major coffee brands can protect this daily ritual for millions of people.”
With a focus on B2B supply and IP licensing, Prefer aims to scale alt-coffee production to 500 tons annually within the next phase of growth. The company is targeting large-scale FMCG players in the Asia-Pacific region first, before expanding to other global markets.
Industry analysts see strong potential in Prefer’s hybrid approach, noting that it addresses both cost efficiency and supply chain resilience—two of the most pressing concerns for food and beverage companies today.
As the startup ramps up production and signs new distribution agreements, it stands as a prime example of how fermentation technology can reshape traditional supply chains while offering immediate commercial benefits. The fact that Prefer’s products are up to two times more affordable than soluble Arabica coffee could prove decisive in winning over cost-conscious brands and consumers alike.
From Singapore to Sydney, Bangkok to Auckland, Prefer’s vision is clear: make coffee and cocoa affordable, sustainable, and available—without relying on a single harvested bean.
