Launched in 2012, Jessica Alba's The Honest Co. is now approaching a market valuation of nearly $1 billion dollars. Not bad for a company started out of sheer necessity.
“I’ve spent way too many hours researching products and driving around trying to find safer, eco-friendly options for my kids," Alba said during the company's launch. "I knew that most people didn’t have that kind of time, nor the means to pay the premium prices. We had to make it easier.”
The actress and her co-founders, Christopher Gavigan, Sean Kane and Brian Lee, initially launched The Honest Co. as a subscription-only service - with parents able to choose from a selection of eco-friendly products to have delivered to their home each month. The company has since expanded with products sold in stores like Whole Foods, Costco, and Target. According to Lee, annual revenue is on track to top $150M; with some 80% of sales tied to the subscription model.
Such success has brought with it massive attention from the venture capital arena, with The Honest Co. recently raising $70M in funding on top of the $52M it's received since launch. According to Dow Jones VentureWire, that puts the company on track for an initial market value of $1B ahead of a planned IPO.
“We believe being a public company is the best path for us going forward and it’s good to get that validation early on,” Honest Chief Executive Brian Lee told the Wall Street Journal. “I can’t say when that will be, but we are definitely starting to think and act like a public company.”
Beyond IPO, the company is next targeting a move into Chinese markets.
“She is an international star," Jeremy Liew, an early investor in the company told the WSJ. "We’re starting to see a lot of demand from her fans around the world. This idea for non-toxic, chemical free products has resonated around the world in developed and developing countries.”
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