Jessica Alba’s startup Honest valued at $1.7 billion post fund raising
Honest Co., the baby-products retailer co-founded by movie star Jessica Alba, has raised $100 million in a new round of funding, valuing it at about $1.7 billion, according to a person familiar with the matter.
The privately held company has been on quite a tear of late, growing to $10 million in revenues in its first year and to more than $150 million last year, according to reports.
Raising its valuation significantly increases the chances of a rumored initial public offering.
Honest launched on the web with 17 products and has since expanded to more than 120, ranging from diapers to organic baby powder, totes, bottles, multivitamins, soap, healing balm and sunscreen (about which, more below).
The brand has a presence in more than 4,000 stores across the United States and Canada, including Target, Whole Foods, Nordstrom and Costco. He co-founded the firm ShoeDazzle with Kim Kardashian in 2009.
The latest funding round attracted Glade Brook Capital, which has invested in Snapchat, and AllianceBernstein.
Honest co-founder and CEO, Brian Lee, is known for his flare with startups and celebrities. Existing investors – Fidelity Management & Research Co., Wellington Management Co. and Institutional Venture Partners – also contributed.
Then, earlier this month, “Alba’s new sunscreen product came under fire when users reported getting sunburns despite applying the product”, the New York Post’s Lisa Fickenscher reminds us.
Honest caught flak this summer after customers complained its sunscreen wasn’t effective, but Alba insisted her products underwent strict testing.
Despite of the good business, Honest does face some glitches.