Impossible Foods Warming Up for $10B IPO with SPAC Merger

UTC by Steve Muchoki · 3 min read
Impossible Foods Warming Up for $10B IPO with SPAC Merger
Photo: Impossible Foods

However, Impossible Foods may opt to raise funds through private means and delay the IPO.

Plant-based substitute for meat company Impossible Foods Inc is reportedly in talks to go for an IPO later this year at a valuation of $10 billion. Impossible Foods has a market valuation of approximately $4 billion, having previously raised funds from private investors.

The Redwood City, the California-based company, was founded back in 2011 by Patrick Brown. Over the years, the company has grown to one of the most popular companies with competitors including Beyond Meat Inc (NASDAQ: BYND).

According to Reuters, the company is considering going public through an initial public offering in the next twelve months or a merger with a SPAC company. A SPAC is a shell company that has raised funds through an initial public offering without any product in the market but acquires private companies in the process.

Impossible Foods Its Market Perspectives Ahead of IPO

Meat substitute products have experienced increased demand, especially during the covid crisis. The reason because the coronavirus has been speculated to have originated from meat products. Furthermore, none-meat food products have been said to have better health benefits than their counterparts.

According to a report by Good Food Institute and the Plant-Based Foods Association (PBFA), plant-based food product sales spiked by 27% year-on-year to $7 billion in 2020. Moreover, the number of outlets where one can access Impossible Foods’ products increased to over 20,000 from a mere 150 stores.

However, Impossible Foods may opt to raise funds through private means and delay the IPO. According to Reuters, the IPO talks are prone to market changes and an official confirmation is prudent in the future. The firm has received financial backing from investors including Khosla Ventures, Horizons Ventures, Serena Williams, Jay-Z who have so far raised $1.5 billion according to PitchBook data.

The Impossible Burger was launched back in 2016 and is praised for its efficiency in the environmental impact. According to the company, its products use 74% less water and 95% less land while emitting 87% fewer greenhouse gases. Furthermore, the Impossible Burger has more proteins, less total fat, zero cholesterol, and less food energy than a similar-sized hamburger made from beef.

Over the years, the company has improved on the existing products to compete with other similar products in the market. Notably, Impossible Foods introduced Impossible Burger 2.0 back in 2019, whereby the company advertised it as more nutritious, juicier, and tastier. As the competition heightens in the food market, Impossible Foods has taken extra measures to remain the best alternative in the market. Earlier this year, Impossible Foods announced it would be lowering US grocery store prices for its products by 20%.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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