(Bloomberg) -- Plant-based meat producer Impossible Foods Inc., which competes with Beyond Meat Inc., is in talks to raise about $500 million at a valuation of $7 billion, according to people with knowledge of the matter.

Terms of the round aren’t finalized and could still change.

Keely Sulprizio, an Impossible Foods spokeswoman, declined to comment.

Impossible Foods, a maker of beef, pork and chicken substitutes, is looking to capitalize on heightened consumer demand for plant-based meat in recent years. The Redwood City, California-based company has expanded into grocery stores including Walmart, Kroger, Albertsons and Trader Joe’s, as well as restaurants such as Jack in the Box and Burger King.

Founded in 2011 by Chief Executive Officer Pat Brown, Impossible Foods touts its reliance on fewer environmental resources -- such as land and water -- than what’s necessary to produce meat. 

In August 2020, Impossible raised $200 million in a round led by Coatue Management LLC that included participation from XN Capital. That came about five months after the company said it raised about $500 million in a round led by Mirae Asset Global Investments, with participation from Khosla, Horizon Ventures and Temasek. Other existing investors include Qatar Investment Authority, London Impact Ventures, billionaire Bill Gates, singer Katy Perry and Serena Williams’ Serena Ventures, PitchBook data shows.

The latest round is set to value Impossible Foods higher than its chief rival: Beyond Meat’s market value was roughly $6.2 billion as of midday Thursday. The El Segundo, California-based company’s shares slid last week after it reduced revenue guidance for the third quarter, citing a decline in retail orders, operational challenges and ongoing impacts from Covid-19.

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