Jessica Alba’s Eco-Friendly Baby Product Business, Honest Co, Pulls In $70M From Investors As It Readies For IPO
We didn’t even know actress Jessica Alba had a side hustle. Not only does she, but it is a huge deal. Her startup Honest Co. is set to for an IPO and it raked in $70 million in funding. Yes, $70 million! This new funding, which was added to the company’s total funding to $122 million, comes from Wellington Management Co.
Honest Co. ships eco-friendly, toxic-free diapers, bath products and cleaning goods to its subscribers and sells more than 85 products online and at retailers such as Target, Costco and Whole Foods.
Now Alba and co-founder Brian Lee are looking to expand. They want to add to their current lineup of offerings baby formula and cosmetics, reports The Los Angeles Times. They also want to broaden their international reach. “Honest has been shipping to Canada for more than a year and is making plans to enter England and Australia. China is a major focus and a key reason for raising the recent round,” reports the The Wall Street Journal.
“We believe being a public company is the best path for us going forward and it’s good to get that validation early on,” Lee told WSJ. “I can’t say when that will be, but we are definitely starting to think and act like a public company.”
Honest was launched in 2012 and it is expected to have a revenue of $150 million in 2014, or three times the revenue of 2013, according to Lee. Alba and Lee built in charitable giving into their business model and they do such things as diaper and crib donations, earning it a B Corp certification from nonprofit group B Lab. (B Corps are companies that uses its power to solve social and environmental problems.) Honest employs 275 workers.
“Nowadays it’s about corporate responsibility. The consumer today demands this of companies and we are doing our part to help in any way we can,” Lee said.