Jessica Alba’s Honest Company Faces A Down Round

Looks like Jessica Alba’s co-founded Honest Company might be in a bit of honest trouble.

According to emerging news reports, the five-year-old home and body care product company is looking to raise $75 million in new Series D venture capital funding at $19.60 per share, according to a Delaware filing first spied by CB Insights and reported by Axios. Honest Company’s last fundraising in 2015 was for $100 million — and at $45.75 a share. That places its total valuation at $1.7 billion.

So, is Honest no longer a unicorn?

It seems possible — verging on likely.

The big price tag on Honest Company, however, is as much a limitation as it is an honor. About a year ago, the firm was in negotiations with Unilever about a potential partnership or acquisition, but that price tag pushed them instead to grab up competitor brand Seventh Generation for $600 million.

Reports last year indicated that Honest was generating $300 million in annual revenue after raising more than $220 million from investors. It has also had its share of personnel drama. Honest Co-Founder Brian Lee stepped down as CEO and was replaced by former Clorox executive Nick Vlahos, who has been tasked with positioning Honest as a more traditional packaged goods company.

Adding to that, in recent memory the firm has been battling back lawsuits with consumer groups concerned about its product labeling.

Additionally, Honest Company cut 80 jobs in the first quarter of this year and has expanded into offline channels at stores like Target, Whole Foods, CVS and Nordstrom.

“Our team is focused on executing a plan that builds on our success to date and transforms Honest into a true omnichannel company that delivers the most authentic, engaging and seamless customer experience possible, wherever our customers shop,” noted Co-Founder Jessica Alba in an interview with TechCrunch.