Asian Oat Milk Leader Oatside Raises $35M in Potential $74M Series B Round

Singapore’s Oatside has secured $35M in its ongoing Series B funding round, which could end up potentially netting the oat milk maker $74M.

Oatside, the oat milk company that has taken over Asia-Pacific, raised S$47.9M (around $35.3M) in a Series B raise in June, a round that could potentially rise to S$100M ($74M).

As reported by DealStreetAsia, the startup’s latest investment was led by private equity firm TR Capital and VC investor Granite Asia. According to filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA), the former injected S$29.5M, and the latter added S$18.4M million to Oatside’s funding total.

But by the time it closes, the Series B round could also see financing from VC firm AC Ventures and Temasek, the Singaporean state investor, and include other components like debt.

Oatside declined to comment at this time about the Series B investment.

Oatside triples revenue and launches new oat milk flavours

Claiming to be Asia’s first full-stack oat milk producer, Oatside was founded in 2020 by Benedict Lim, a former CFO at Kraft Heinz Indonesia. The company’s oat milk – produced in Indonesia’s Bandung regency using roasted Australian oats – is known for its hints of malted notes, designed specifically for Asian palates.

The startup’s mission is to “be the plant milk for people who don’t care for plant milks”, honing in on the taste aspect of the oat milk, Lim told Green Queen in 2022. Judging by its presence – its products are available in over 18 countries, including Singapore, Indonesia, Malaysia, South Korea, Thailand, Taiwan, Hong Kong, the Philippines and India – it’s safe to say that Oatside is succeeding.

The latest funding takes Oatside’s total investment past $118M, following a $65.6M Series A round in 2022 (which was co-led by Temasek Holdings), and a $7.6M raise last year.

The Series B also comes after a year of continued growth for Oatside, with a threefold hike in revenue in 2023, surpassing S$50M ($37M), DealStreetAsia reported. Meanwhile, the company’s losses also shrunk by 59%, reaching S$1.4M (just over $1M).

In late 2023, the brand expanded into the ice cream realm with three flavours, followed by Mocha and Salted Caramel versions of its milk. And now, it has leant into the maltiness of its core product with a new Chocolate Malt oat milk. Initially available in Singapore, the company describes itself as “liquified chocolate toast”.

Like fellow oat milk producer Oatly, the brand is known for its wacky, self-deprecating, humorous marketing. Its ice cream launch, for example, included phrases like “nuttier than your aunty’s conspiracy theories, and richer than your ex’s excuse for ghosting you” and “meet the ice cream you didn’t ask for”.

Asia thirsty for plant-based milk

Asia-Pacific is the best-performing region for plant-based milk, with dollar sales reaching $9.8B in 2023, more than twice as high as Europe, and over three times as high as the US, according to Euromonitor International’s Fresh Food report.

The milk analogue market in APAC is worth $28B, according to one estimate, and accounts for 50% of the global share. This is only set to increase, with a survey by PwC in June revealing that a third of Asians (32%) are looking to increase their consumption of plant-based milk over the rest of the year.

And within Singapore, 30% of consumers are limiting their dairy intake, with 70% actively seeking ways to be more eco-conscious, according to Mintel research. And a 1,000-person poll by Milieu revealed that 87% of its citizens have tried a milk alternative, of which 62% consume these products regularly.

The city-state is home to multiple oat milk startups like Noomoo, Oatbedient and OatMlk, and has seen an influx of international plant-based milk companies, including Rude Health (UK), Happy Happy Soy Boy (Australia), Otis (New Zealand) and Oatly (Sweden). The latter opened a $30M oat milk manufacturing facility with local beverage giant Yeo Hiap Seng in 2021, its first such factory in Asia.

Oatside is now aiming to appeal to all ages with a new mascot called Bunny, which is said to “embody the spirit of adventure”, to complement its existing Bear character. To promote its new product, it’s hosting a series of pop-up events for children and families in Singapore’s New Bahru shopping centre until September 9.