Bean-Free Coffee Startup Prefer Nets $4.2M in Pre-Series A Funding

Singaporean food tech company Prefer has raised an oversubscribed US$4.2 million in its pre-Series A funding round, led by Chancery Hill Capital and At One Ventures, with support from Forge Ventures. This latest round has taken the startup’s total equity funding to US$6.2 million. 

The funding coincides with the launch of its bean-free soluble coffee and cocoa powders, created through a proprietary fermentation process that upcycles byproducts like rice and soy, helping cut emissions and reduce environmental impact.

The company said the fresh capital will be used to scale production, advance its cocoa flavour technology, and strengthen global partnerships, with a continued focus on Asian markets. Prefer has also inked its first international commercial deals with Ajinomoto Co. (Thailand) Ltd and The Coffee Ferm in Australia, marking its initial steps toward overseas expansion.

Jake Berber, the cofounder and CEO of the company said the funding process took around six months, during which raising capital became the company’s primary focus amid what he described as the toughest fundraising environment for the sector in ten years. “Twenty-plus investor calls a week was not uncommon,” Berber noted, adding that the team moved quickly so they could return to product development and scaling operations.

Born out of Singapore’s Agency for Science, Technology and Research, the startup has created a proprietary roasting and fermentation process that transforms food manufacturing byproducts—such as soy and rice—into sustainable coffee and cocoa alternatives. These products are crafted to mimic the taste and qualities of conventional coffee and cacao, while significantly lowering both production costs and environmental footprint.

Prefer claims its coffee generates up to 85% lower emissions compared to traditional Arabica beans and costs around 50% less. The company provides its sustainable ingredients to food manufacturers, flavour houses, FMCG brands, and private label retailers, giving them an alternative that lessens dependence on conventional coffee and cacao farming.

On the global stage, the company has announced its first commercial agreements for its bean-free coffee with Ajinomoto Co. (Thailand) Ltd and consumer goods brand The Coffee Ferm in Australia and NZ. The Thailand partnership will see the development of sustainable coffee beverages under Ajinomoto’s “Eat Well, Live Well” lifestyle initiative, while The Coffee Ferm will license Prefer’s flavour IP to produce and distribute locally.

At One Ventures partner Helen Lin, who also serves on Prefer’s board, said the investment reflects the urgent need to reduce the agricultural footprint of the global food system while maintaining quality for consumers. “By reducing the need for commodity coffee and cacao farming, Prefer is enabling a future where taste and climate alignment can go hand in hand,” she said.

Berber added that with strong investor backing, proven product quality, and a committed team, Prefer is positioned to make coffee and cocoa accessible to more consumers without compromising environmental sustainability. The company is also inviting coffee and cocoa industry players to explore its offerings, highlighting cost savings, supply chain resilience, and climate benefits as key advantages.

Image credits: Prefer