Jessica Alba's The Honest Company raises USD25 million in funding
The Honest Company recently nabbed USD25 million in its funding round. Jessica Alba's clean-living startup was able to garner support from leading investor Institutional Venture Partners and existing investors Lightspeed Venture Partners and General Catalyst Partners. Honest was also able to attract new investor Iconiq Capital via its investment round. Honest had received a total of USD52 million in funding.
Honest was founded by Alba and Christopher Gavigan, Brian Lee, and Sean Kane. The group's purpose in creating such startup was to establish a bridge between parents and family products that are affordable and are environment-friendly.
According to a TechCrunch report, Honest's double-digit growth since launching in January 2012 had managed to attract interest from venture capitalists. However, the report quickly pointed out that Alba's visibility and star power as a celebrity might have contributed to Honest's investor attraction as well.
The startup would reportedly use proceeds from the funding round to create new products and build out its ranges of items it had been offering on its website. Honest disclosed that it had plans to make improvements in its distribution systems and the accessibility of the brand. The startup was reportedly thinking of adding more retail partners to its brand. Mainly, Honest intended to execute growth plans that included an international expansion outside its home market in the US. The startup hinted at a possibility to expand in Canada, dubbing it as a positive step for its growth.
Honest's website requires customers to sign up tyo be able to utilize its exclusive e-commerce services dedicated to clean living. Subscribed users would be able to opt in to product bundles and also sell products via partnerships with physical store retailers. These partnerships had allowed Honest to connect over 30,000 families who wishes to donate time or product. Honest also does promotion via its tips-focused blog. The blog was created solely for families.