Impossible Foods increases capital before possible IPO

Is Impossible Foods considering an IPO? The manufacturer of the plant-based Impossible Burger, is certainly in talks with investors about a new capital round…

IPO on the way?

The new fundraising round should raise between 300 and 400 million dollars (270 to 360 million euros), insiders told Reuters, but these plans can still be adjusted on the basis of feedback from investors. The capital round could also be the prelude to an IPO, which might be launched as early as next year.

“We need to consider every option for fueling our long-term growth. However, we have not announced any plans or timing regarding an IPO”, a spokesperson for Impossible Foods told Reuters. The company, whose backers include venture capital investors Khosla and Horizons along with celebrities such as tennis star Serena Williams and singer Katy Perry, has so far raised 777 million dollars (700 million euros) through several rounds.

Taking advantage of momentum

The California-based company is trying to take advantage of the growing demand for alternatives to meat. Competitor Beyond Meat has seen the value of its shares more than triple since their IPO in May and is now worth about 4.8 billion dollars (4.3 billion euros).

The global market for meat substitutes generated a turnover of 4.2 billion dollars (3.8 billion euros) in 2018 and, according to a report by Research on Global Markets, will be worth 6.1 billion dollars (5.5 billion euros) by 2023.