Rise in fake meat demand amid Covid-19 a boon for Temasek-backed Impossible Foods

The US firm, backed by Singapore’s Temasek and Li Ka-shing’s Horizon Ventures, is seeking more investment offers because of the uncertain business environment, sources say

An understanding of the links between industrial meat production and deadly human viruses has become an opportunity for the plant-based protein sector

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Vegan charsiu buns by Impossible Foods are offered at a press event on January 6, 2020, in Las Vegas. Photo: Getty Images/AFP

Published: 8:00am, 5 May 2020Updated: 9:19pm, 5 May 2020

Impossible Foods, the US maker of soy-based burgers whose backers include Singapore’s Temasek Holdings and Hong Kong’s Horizon Ventures, has been in talks with investors about raising more funds after receiving excess demand for a US$500 million funding round in March, according to people familiar with the matter.

The firm has held initial talks with potential investors including some Chinese funds, said the people, who asked not to be identified because the information is private. The discussions come as a potential meat shortage is bringing attention to substitutes and lifting the shares of rival plant-based protein manufacturer Beyond Meat.

Impossible Foods is considering investment offers because of the uncertain business environment caused by the coronavirus pandemic, one of the people said. Companies around the world have been tapping credit lines, cutting jobs and trying to shore up cash to deal with the economic damage.

The coronavirus crisis is turning into a big opportunity for the plant-based protein sector. Photo: Shutterstock

Impossible Foods’ valuation was about US$4 billion in the March round, which was oversubscribed. It is unclear what valuation it would seek in a new funding round and it could decide to change its plans, the people said.

A representative for Impossible Foods declined to comment.