Eat Just, maker of plant-based eggs, eyes US$2b valuation

New York

EAT Just Inc, a startup that makes plant-based eggs, is seeking funding in what may be its last capital raising before an initial public offering, said people with knowledge of the matter.

The Just Egg maker is working with an adviser to raise at least US$200 million in a transaction that may value the company at US$2 billion or more, said one of the people, who requested anonymity because the talks are private. Terms have not been finalised.

"As a high-growth company focused on expanding Just Egg sales and capacity expansion needs, we are always evaluating sources of capital to achieve our mission to build a healthier, safer food system," Andrew Noyes, a spokesperson for the San Francisco-based company, said in a statement to Bloomberg News.

He declined to comment on fundraising details.

Eat Just, which does business as Just and also makes products like eggless mayonnaise, is working toward achieving operating profitability, Mr Noyes said.

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Once it hits that milestone, it will then consider options for going public.

Eat Just, last valued at US$1.2 billion, has raised more than US$300 million in funding from investors including Khosla Ventures.

As at August, the company had sold the equivalent of more than 50 million eggs, its website shows, up from roughly 40 million cited in a Bloomberg Businessweek feature published in June.

Eat Just is led by co-founder and chief executive officer Josh Tetrick.

The company, once known as Hampton Creek, was the subject of regulatory inquiries into its practice of buying back products from stores, though no wrongdoing was found.

Eat Just said this week that it plans to build and operate its first plant protein facility in Singapore, with investment from a group led by Proterra Investment Partners Asia Pte.

Plant-based food companies are benefiting from changing consumer habits as institutional investors seek to make bets on companies that satisfy environmental, social and governance targets.

Beyond Meat Inc shares have more than doubled this year; and Tattooed Chef Inc, a maker of plant-based foods that went public through a special purpose acquisition company merger, has gained about 88 per cent. BLOOMBERG