The movie star’s eCommerce startup Honest Co., which she cofounded in 2011 to offer nontoxic products, has raised $100 million in its latest funding round, valuing the site at nearly $1.7 billion, The Wall Street Journal reported yesterday (Aug. 13).
According to a source familiar with the matter, the new funding has the potential to boost the company’s value by more than 50 percent since the last time it held a funding round in 2014.
Just last week, Reuters reported Honest was seeking new capital at a valuation of up to $2 billion, but the company has declined to comment on the matter.
The Honest brand was created to suit the needs of consumers concerned about the materials that go into the everyday products they use, from diapers to toothpaste. Honest has established a growing popularity among parents who are willing to dish out more money for the peace of mind of knowing they are not using products filled with unnecessary chemicals.
Earlier this year, the company confirmed its sales increased to $170 million last year, a sharp increase from $60 million in 2013. According to WSJ, 75 percent of product sales by Honest take place through its online store. Alba’s business is also beefing up its store distribution, with items available in more than 2,500 locations.
The source close to the matter could not confirm the investors who may participate in Honest’s new funding round. Previously, the company secured $122 million from investors such as General Catalyst Partners, Institutional Venture Partners, Lightspeed Venture Partners and Wellington Management.
Raising its valuation significantly increases the chances of a rumored initial public offering.
Last year, Honest Cofounder and CEO Brian Lee told WSJ the company was “starting to think and act like a public company” in order to prepare for an IPO.