Impossible Foods has set a goal to raise $500 million in its latest funding round. According to Bloomberg, the company is expecting a valuation of $7 billion, though terms had not yet been finalised.
Last year, the company had two very successful fundraisers. In August 2020, Impossible raised $200 million, and a significant $500 million a few months prior. The company is also reportedly preparing for a $10 billion IPO.
If the funding round reaches its goal, Impossible Food’s value will exceed that of its main competitor, Beyond Meat. Beyond is currently valued at approximately $6.2 billion, although its shares recently lost value after it lowered its projected revenue for the third quarter of 2021. The company says it is still struggling with the impact of Covid-19, along with operational challenges and lower retail orders.
Both Impossible and Beyond have always been competitive players in the market, going head-to-head to innovate and launch new products to the market. This recent summer, the companies raced to launch plant-based nuggets in what was labelled “Chicken Wars”. After that, Impossible has been offering its plant-based sausage across the US and has also expanded into the Middle East. Additionally, the company has revealed it is working on plant-based whole-muscle meat products, which are known for being difficult to get right.
Earlier this year, Reuters released a report which suggested that Impossible Foods may have been preparing for a public listing which could either take the form of an IPO or a merger with a special purpose acquisition company (SPAC). The report also claimed that Impossible had been receiving the help of a financial adviser to discuss mergers with SPACs, and noting that the SPAC option may “dilute existing Impossible Foods shareholders, however, by a greater extent than an IPO,” the sources added.
