FoodTech Prefer Raises $4.2M For Low Carbon Coffee

FoodTech startup Prefer has raised $4.2 million in a Pre-Series A funding round to speed up the development of its sustainable coffee and cocoa alternatives. Founded in 2022 by Jake Berber and Ding Jie Tan, the Singapore-based company aims to lead a new wave of food innovation. Prefer offers products that mimic the taste, aroma, and functionality of coffee and cocoa while significantly reducing their environmental impact and cost.

This week, Prefer launched its soluble coffee and cocoa powders. The company believes this milestone shows how upcycled ingredients and fermentation processes can transform the food system. Their goal is clear: to provide climate-friendly options for popular products without sacrificing taste or accessibility.

The start-up's process involves using food manufacturing byproducts like rice and soy and transforming them through fermentation and roasting. According to Prefer, this method allows them to cut greenhouse gas emissions from coffee production by up to 85 percent compared to conventional Arabica beans, while halving costs. This is especially important as the global coffee industry faces rising costs and increasing environmental challenges.

The effects of Prefer’s products reach beyond climate benefits. By offering a low-cost, scalable alternative, the company gives manufacturers, brands, and retailers new tools to enhance supply chain stability while meeting growing consumer demand for sustainable options. Prefer is already supplying its ingredients to fast-moving consumer goods brands, food manufacturers, private-label retailers, and flavor houses. These partners benefit from cost savings and a more reliable sourcing path in industries where raw material availability can change due to climate issues and market volatility.

The funding round was co-led by At One Ventures and Chancery Hill Capital, with continued backing from existing investor Forge Ventures. With this funding, Prefer has now raised a total of $6.2 million in equity since it started. For the company, this financial boost also affirms its vision of separating everyday food consumption from harmful environmental practices.

Along with the funding news, Prefer announced its first major international partnerships. In Thailand, they partnered with food giant Ajinomoto to co-develop sustainable coffee beverages that fit the brand’s “Eat Well, Live Well” commitment. This collaboration aims to leverage Ajinomoto’s market presence and product development knowledge to introduce sustainable coffee innovations in Southeast Asia. In Australia and New Zealand, Prefer has joined forces with The Coffee Ferm, which will license its flavor technology to expand local manufacturing and distribution. This approach reflects the company’s strategy to build strong local ecosystems around its technology, ensuring both scalability and regional adaptation.

In the future, Prefer plans to increase its pilot production capacity by working with toll manufacturers in key markets. This strategy will help the company grow without requiring large investments in infrastructure. They also intend to enhance their research on cocoa flavor development due to the urgent need for sustainable cocoa alternatives as global supplies face pressure from deforestation and climate change.

Speaking about the company's growth, Co-Founder and CEO Jake Berber highlighted the team’s unique industry position. With the help of new partners and the dedication of their team, he believes they can make coffee and cocoa available to everyone while being kind to the planet. His remarks reflect Prefer’s commitment to both product accessibility and environmental responsibility, a priority for consumers and investors alike.

Helen Lin, Partner at At One Ventures and a member of Prefer’s board, pointed out the wider impact of the company’s efforts, noting that they are in the early phases of transforming the food system. She indicated that companies like Prefer can reimagine food staples as sustainably produced products instead of commodities tied to fragile ecosystems.

Prefer’s fundraising and commercial progress come at a critical juncture for the global food system. Coffee and cocoa, significant cultural and widely consumed commodities, face growing threats from climate change and unsustainable farming methods. As consumer demand steadily increases, traditional production methods are becoming less sustainable. In this scenario, innovative solutions like Prefer’s fermentation-based options may be key to creating a more resilient and responsible food future.

By merging innovation with sustainability, Prefer shows that low-carbon food alternatives are now a reality. With new funding, solid international partnerships, and a growing range of products, the company is not just offering consumers a way to enjoy their favorite beverages guilt-free; it is also leading the movement for a global change in food production and consumption.