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Impossible Foods in discussions to go public at $10 Bn valuation

Impossible Foods in discussions to go public at $10 Bn valuation

Impossible Foods Inc, a plant-based food manufacturer is in talks for a public listing, which could bring its value to nearly $10 billion, or more. This would be a marked increase over the company’s $4 billion valuation in 2020, in a private funding round.

It will also place emphasis on the escalating demand for plant-based meat alternatives, driven by ethical as well as environmental concerns among consumers.

The company is exploring going public through either an IPO (initial public offering) over the upcoming 12 months, or through a merger with a so-called SPAC (special purpose acquisition company), claim sources with knowledge of the matter.

Impossible Foods has employed a financial advisor to aid in the discussions with SPACs post receiving offers at lucrative valuations. Merging with SPACs to go public could dilute the existing shareholders of Impossible Foods, however, by a larger extent than an initial public offering.

The sources, who requested anonymity owing to the private nature of the discussions, warned that these deliberations are dependent on market conditions, and the company may choose to pursue a separate private fundraising round.  

An Impossible Foods spokeswoman declined to provide any comments on the matter.

The backers of Impossible Foods range from venture capital investors like Horizons Ventures and Khosla Ventures, to celebrities such as Jay-Z and Serena Williams. The company has raised $1.5 billion so far in the private market, according to data from PitchBook.

Retail sales of the U.S.-based plant-based company reached $7 billion in 2020, indicating a hike of 27% Y-o-Y, according to a PBFA (Plant-Based Foods Association) and Good Food Institute report.

For the uninitiated, Impossible Foods, a Redwood City, California-based company founded in 2011, sells its plant-based, meat free sausage and burger products in grocery stores and has partnerships with prominent entities like Disney and Burger King.

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Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for, spanning the verticals of business, finance, and technology.