Jessica Alba's Honest Company is no longer a unicorn. The consumer goods company is raising $75 million in new venture capital funding at a valuation that is 57 percent lower than its last round, according to a document filed by Delaware regulators.
The Honest Company's new round would be a Series E stock priced around $19.60 per share, which is more than half of the value of its Series D shares sold in 2015. That means the startup's valuation will drop from $1.7 billion to below $1 billion.
Alba created The Honest Company in 2011 after an allergic reaction to a laundry detergent. The company sells more than 100 non-toxic products like shampoo, diapers, and household cleaners. Its raised more than $220 million in funding since 2011 from firms like Lightspeed Ventures and General Catalyst.
This news comes after a difficult year for The Honest Company. Co-founder Brian Lee stepped down as CEO earlier this year after controversies erupted over an ingredient in the brand's detergent. The company also faced two lawsuits that were settled in the summer-- one involving the aforementioned detergent and another claiming that The Honest Company fraudulently labeled some products as all-natural or chemical-free. What's more, there were rumors that Unilever would acquire the company, but Unilever purchased Seventh Generation instead.