Favor secures US$4.2million in oversubscribed pre-series A funding spherical, eyes oversees expansions

Espresso with out espresso beans? It seems like a ridiculous concept at first, however Jake Berber and Ding Jie Tan, founders of Favor, managed to make it a actuality.

Simply this Aug, the duo introduced they’d efficiently raised US$4.2 million in an oversubscribed pre-series A funding spherical, and that they’ll make their first entry into two worldwide markets: Thailand and Australia.

They are going to be partnering with two international FMCG conglomerates in these territories: Aijinomoto and The Espresso Ferm from Thailand and Australia, respectively. The corporate will collaborate to create new sustainable espresso improvements in Thailand, whereas it can license its flavour IP to scale manufacturing and distribution in Australia and New Zealand.

“This funding supercharges our mission to show that fermentation is the important thing to unlocking the immense biochemical potential hidden inside our meals system’s byproducts, creating a very sustainable and resilient approach to produce the flavours we love,” shared Ding Jie, who can be Favor’s CTO.

Vulcan Put up first featured Favor again in Feb 2024, and we caught up with the duo once more final month to learn the way the previous 12 months has been for them and get a sneak peek at potential new plans.

Commercialising & launching new merchandise

First based in 2022, Favor grew to become identified for its “bean-free” espresso substitutes, created by fermenting extra bread, soy pulp, and spent grain that goal to copy the style, aroma and brewing expertise of conventional espresso.

Historically, fermentation is used to extend the shelf lifetime of perishable meals objects, which leads to modifications in style and enhanced dietary content material. In line with Ding Jie, who can be the corporate’s CTO, the agency leverages this typical course of to create revolutionary and sustainable meals merchandise for the long run.

The duo has come a good distance since we first spoke to them final Feb, once they began making floor and ready-to-drink espresso.

Favor first expanded its product vary this Apr, when it formally launched canned espresso and teamed up with Le Tech Merchandising, a merchandising machine vendor with SMRT Company, to distribute its merchandise at eight MRT stations throughout Singapore, together with Dhoby Ghaut Xchange and Woodlands, simply three months later.

Not too long ago, the corporate has additionally launched two new merchandise: a soluble bean-free espresso powder and a cocoa-free cocoa powder.

As espresso and cocoa prices soared and provide chains wavered, its B2B companions pushed the corporate to create extra versatile codecs much like immediate mixers. These “espresso” and “cocoa” powders can now function extenders that may be added to unique espresso and cocoa-based drinks.

“This enables manufacturers to stretch provide, scale back prices, and decrease emissions,” added Jake, who can be Favor’s CEO.

Like a science experiment, they carried out a number of rounds of checks and mixtures of substrates and microbes to create the closest match to the unique espresso and cocoa powders. This course of took 12 months for every product to change into commercially viable, and scaling up their manufacturing has been difficult.

“We needed to get scrappy and improvise alongside the way in which!” exclaimed Ding Jie.

Over the previous 12 months, Favor has additionally labored on increasing its attain by its partnerships in Singapore.

Specifically, the corporate has bought its bottled and canned espresso merchandise at eating places and gymnasiums akin to Anytime Health, Guzman y Gomez, in addition to collaborated with different F&B companies like Form Kones and Melvados to create new meals merchandise.

Nevertheless, securing these partnerships hasn’t been straightforward.

As an illustration, Jake wrote on LinkedIn that he personally visited The Fullerton Lodge’s entrance desk to request the F&B director’s contact info in hopes of stocking their merchandise, waited within the foyer till employees offered him with a reputation and a enterprise card, after which adopted up persistently.

After a number of unsuccessful emails and calls, they lastly scored a gathering—solely to get rejected. The lodge appreciated the espresso, however rejected it as a result of the beverage got here in plastic bottles. Undeterred, Jake and his staff reformulated the product into cans and ready to re-engage, however the lodge’s F&B lead left, and so they needed to begin outreach from scratch.

In the long run, their persistence paid off and Favor acquired to inventory their merchandise at The Fullerton in Jul 2025.

Whereas evidently Favor depends on its retail gross sales for development, Jake has clarified that the majority of the corporate’s income derives from its B2B operations. By concentrating on the bigger meals provide chains of FMCG companions, Favor is commonly capable of derive bigger price financial savings and make an even bigger local weather influence.

This focus ties again to Favor’s core mission: to supply a sustainable, inexpensive different to harvested espresso—one of many crops most weak to local weather change.

With a strong floor in Singapore, Favor is able to develop into worldwide markets in APAC

With strong floor in Singapore, Favor has set its sights on constructing extra revolutionary substitutes and increasing into worldwide markets within the Asia Pacific area, and with the brand new funds secured, they’re only one step nearer to larger mainstream development.

In preparation for its first worldwide launches and partnerships, Jake and Ding Jie shared that Favor will scale up its manufacturing of espresso and cocoa substitutes to fulfill demand.

Past these two international locations, Favor will double down on Asian markets, with Jake noting the mass market demand for espresso and cocoa is huge and rising. Having stated that, he additionally shared that the corporate has been receiving inbound curiosity from the US and the EU and has engaged in early discussions there.

Ding Jie additionally expressed his ambition to construct up their capabilities in fermentation and flavour creation to assist their long-term objective of increasing their portfolio past espresso and cocoa. Whereas they’ve stored specifics beneath wraps, the duo has teased potential launches of their cocoa-free chocolate.

What began as an formidable venture out of the founders’ love for the earth became a full-fledged enterprise that has gained the approval of consumers and companies alike.

Favor may not substitute espresso, however they may simply make it extra pleasurable for extra years to return.

• Study extra about Favor right here.
• Learn extra tales we’ve written on Singaporean companies right here.

Featured Picture Credit score: Favor