Prefer, a Singapore-based food tech startup, has raised oversubscribed US$4.2 million in a pre-series A round co-led by At One Ventures and Chancery Hill Capital, with additional backing from Forge Ventures.

The new funding brings the company’s total equity raised to US$6.2 million.

Prefer plans to increase production, further develop its cocoa flavor technology, and grow its global partnerships, with a continued focus on Asia.

The company, which originated as a spin-off from the Agency of Science, Technology and Research (A*STAR), also announced the commercial launch of its soluble coffee and cocoa powders.

Prefer uses fermentation to produce flavors and ingredients from food manufacturing byproducts such as rice and soy.

The company has formed commercial partnerships with Ajinomoto in Thailand and The Coffee Ferm in Australia and New Zealand for international expansion.

Prefer supplies its ingredients to FMCG brands, food manufacturers, private label retailers, and flavor houses.

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🔗 Source: Prefer

🧠 Food for thought

1️⃣ Ancient fermentation methods are finding new purpose in modern sustainability challenges

Prefer’s approach represents a fascinating convergence of humanity’s oldest food processing technique with today’s climate concerns.

Fermentation has been integral to human civilization for thousands of years, with evidence of its use by ancient Egyptians for winemaking around 1500 B.C.1. What began as accidental discoveries in beer and wine production has evolved into sophisticated biotechnology2.

Today’s food entrepreneurs are leveraging this time-tested process to address modern supply chain vulnerabilities and environmental impact.

The biochemical principles remain the same, with microorganisms transforming organic compounds into new products, but the applications now target sustainability rather than just preservation.

This historical continuity suggests that fermentation-based solutions like Prefer’s may offer resilience and scalability advantages over entirely novel food technologies.

2️⃣ Alternative coffee and cocoa sectors are attracting unprecedented investment amid supply pressures

Prefer’s $4.2 million raise reflects broader market momentum in coffee and cocoa alternatives driven by climate and cost pressures.

The alternative coffee and chocolate sectors collectively secured over €300 million in funding, with €120 million raised in 2024 alone, representing a 113% compound annual growth rate from 2019-20243.

This surge coincides with significant investments flowing into alternative food products as companies respond to climate change and supply chain challenges affecting traditional commodity markets4.

Companies are increasingly investing in technologies that extract value from food byproducts, transforming waste streams into valuable food inputs5.

Prefer’s partnerships with established players like Ajinomoto demonstrate how traditional food companies are seeking external innovation to diversify their supply chains and reduce commodity dependence.

The sector’s growth trajectory suggests that alternative ingredients may transition from niche solutions to mainstream supply chain components as cost and sustainability pressures intensify.

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