Hollywood actress Jessica Alba is starring in her own e-commerce startup, whose latest round of funding has made it a US$1.7 billion company.
Alba co-founded Honest Co. in 2011 to sell non-toxic baby products such as diapers and toothpaste to consumers worried about the materials used in everyday household items.
The Wall Street Journal is reporting that the US$100 million fundraising has boosted the value of the e-commerce company by more than 50 percent since it last raised funds a year ago.
Earlier, Reuters reported that Honest was seeking new funds at a valuation up to US$2 billion.
The Honest brand has become popular with parents who are willing to pay a premium to allay fears of exposing their infants to unnecessary chemicals.
Honest said sales grew to US$170 million in 2014, up from US$60 million in 2013.
It sells more than 75 percent of its products through the internet.
It is building up its store-distribution business, with items available in more than 2,500 locations, including Target Corp. stores.
Most of Honest’s customers subscribe to a monthly service for delivering diapers and other products.
Honest faced a major challenge last year in Amazon.com, which introduced a diaper brand that promised full transparency about the products’ origins.
Amazon, however, this year pulled those diapers after customers complained of the design.
This summer, some customers took to social media to complain that Honest sunscreen lotion wasn’t protecting their skin, uploading photos of their sun burns to Instagram and Twitter as proof.
Alba responded to the concerns in a blog post saying the lotion went through “extensive third-party testing in accordance with government regulations” and passed all tests.
– Contacu us at [email protected]