Oatside sows 3x revenue growth as expansion bears fruit

“To be the plant milk for people who don’t care for plant milks.”

That’s the mission of Singapore-based oat milk brand Oatside, which raised US$66 million in a series A round in August 2022 from investors including Temasek and Granite Asia.

The plan? To expand its production output across Singapore and the broader Asia-Pacific region.

Photo credit: Oatside

Oatside’s products were available in five markets at the time of its series A fundraise. Now, they are available in 18 countries, including Indonesia, Japan, and China.

This expansion has paid dividends for Oatside, with the company’s revenue growing 3x year on year to S$53.8 million (US$41.4 million) in 2023.

Expenses rose, but by a smaller degree, which resulted in its total losses for the year improving by 59% to US$1.7 million.

Tech in Asia reached out to Oatside for comments but did not receive a response.

Full-stack brand

The company was founded in 2020 by Benedict Lim, who also serves as its CEO. Before this, he spent three and a half years with F&B giant Kraft Heinz where he held multiple roles, including CFO for Indonesia and Papua New Guinea as well as head of M&A in Asia Pacific, Middle East, and Africa.

Oatside’s strategy involves two pillars, one of which is being a “full-stack” oat milk brand. This means having its own factories and production lines, which allows the firm to fine tune its oat milk recipe more quickly. While the company tried to work with third-party manufacturers in the early days, Lim previously said that none of them were able to capture the flavor and texture he wanted.

The company says it has a highly automated production line, making its oat milk products in the mountains of Bandung, the capital city of the West Java province of Indonesia. It uses natural spring water around Bandung as well as Australian oats, which the company says has a creamier texture and nuttier taste compared to those sourced from European countries.

Running a full-stack operation is expensive, with initial investments into equipment and plants significant. In 2023, Oatside spent US$15.8 million for the purchase of plants and equipment, 143% more than the year before.

In the end, the investment in its own facilities has been worth it for Lim and his team. Oatside says that its milk is creamier and more dairy-tasting compared to other milk alternatives like soy and almond. The CEO previously said that its products’ flavor and texture was the brand’s main claim to fame.

4.5 years runway