Jessica Alba's Honest Company has raised $100 million in its latest round of funding, the company announced Friday.
When Inc. wrote about Alba last November, the three-year-old company had a $1 billion valuation and more than a $150 million in revenue. This new round of funding reportedly pushes Honest Company's valuation close to $1.7 billion, according to a recent Wall Street Journal report citing sources familiar with the matter.
The injection of cash is going to give the fast-growing company more runway to expand its product line-up-- which already numbers more than 120 items--expand overseas, and, presumably, get closer to an initial public offering.
"This funding will enable us to expand our current product offerings, support the upcoming launch of Honest Beauty, and further our goal of bringing Honest products to a greater number of households around the world,” Brian Lee, Honest Company co-founder and CEO, said in a news release.
Investors in the round include Glade Brook Capital Partners, which led the round, AllianceBernstein, Fidelity Management & Research, Wellington Management Company, and Institutional Venture Partners.
In recent months, Honest--best known for its baby, home, and personal-care products available online and in more than 4,000 stores--has expanded its product line-up to include infant formula and non-toxic feminine care, and beauty products are soon to follow. The company has product kiosks in several major airports and also plans to launch in China by the end of the year.
At Inc.'s GrowCo conference in April, Lee talked about the company's goal of going public.
"There is no timeline for an IPO, but we believe that ultimately this could be a great public story," he said.
In recent weeks, Honest has struggled with a different story as customers took to social media to complain that the company's sunscreen doesn't work. Honest issued a statement saying that its sunscreen had passed rigorous third-party testing and used Twitter to refer people to its customer service department.
[Customer service] is the heart of your company," Alba, Honest co-founder and chief creative officer, told Inc.'s GrowCo audience in April. She recounted how the company dealt with the initial complaints over its baby wipes and then redeveloped the product several months later. "We do listen to our customers… I challenge another company to iterate and move like that."