The Honest Co., (Honest (.co and .com), an e-retailer of natural bath and personal care products, has raised $70 million in a new funding round, bringing its funding to date to $122 million. The e-retailer, co-founded by actress Jessica Alba, launched in 2012.
The merchant began by selling subscriptions for monthly shipments of product bundles, such as a 30-day supply of diapers and wipes or a “health and wellness” bundle of organic vitamins and supplements, for a flat monthly fee of $39.95. The web retailer now also sells products individually and ships to consumers in the United States and Canada.
Wellington Management Co. LLP led the funding round, and existing investors Lightspeed Venture Partners, Institutional Venture Partners, General Catalyst Partners and ICONIQ Capital also contributed.
“This funding will enable us to expand our current category offerings and availability, and develop products across many new and exciting categories,” says Brian Lee, The Honest Co. co-founder and CEO. Lee also founded ShoeDazzle.com Inc., an e-commerce site that follows a similar monthly subscription model and is No. 177 in the 2014 Top 500 Guide.
Jessica Alba undoubtedly has star power and it has benefited Honest Company, a marker of eco-friendly baby products she co-founded in 2011.
According to The Wall Street Journal, industry experts value the company’s worth at nearly $1 billion.
The company’s annual revenue is expected to exceed $150 million, which is three times the revenue of 2013, and those involved attribute Alba’s star power to the startup’s early success.
In an interview with The Associated Press after the company launched, Alba, a mother of two, said she came up with the idea after learning that toxic chemicals were widely used in everyday products.
"I would buy what I thought was like an eco-brand and pay out the wazoo for it and then find out that it's made with the same ingredients as any other brand, but the packaging is a little more biodegradable and you're like `But I care about the product touching my kid. Is that OK?'"
In a press release released by the company, Alba said the investors are helping the company “make a meaningful impact in the marketplace.” Says the company's website:
"Jessica Alba is a Golden Globe-nominated actress whose career includes roles in films such as "Fantastic Four" and "Little Fockers," as well as television series like "Dark Angel," "The Office" and "Entourage."
The California native comes from modest beginnings, and never lost her zeal to share her good fortune with others. She is actively involved with charities such as Safer Chemicals Healthy Families, ONE, Habitat for Humanity, Project HOME and more.
But, there is one role she enjoys above all others: Mom. "Being a mom is the most profound experience I've ever had," she says.
As a mother of young daughters (4-year-old Honor and newborn Haven), Jessica admits she feels an intense responsibility to give her children the best possible start.
"When I became a mom, I finally became the person I am, that I always should have been," she says.
"It's the most satisfying job in the world. But, it can also be overwhelming and confusing. I created The Honest Company to help moms and to give all children a better, safer start.""Thanks to Internet retailer, Fox News Latina and to you for listening.