Honest Co., founded by actress Jessica Alba to provide products for babies that are made with non-toxic ingredients, raised $70 million in a funding round as it seeks to grow through acquisitions.
Honest Co. is looking at potential deals in technology and manufacturing, in addition to other e-commerce businesses and distribution platforms, co-founder and President Sean Kane said today by phone.
The Santa Monica, California-based company also is looking to use the cash to broaden its current product line - which includes diapers and wipes - into other areas such as cosmetics, Kane said. The startup plans to expand internationally, with a website in China planned for late next year, he said. Honest Co. posted $50 million in revenue last year and Kane projects sales will quadruple in 2014.
The Series C funding values the company at slightly less than $1 billion, he said. Wellington Management Co. led the investment round, which included some previous investors such as Institutional Venture Partners.
“When you reach this kind of scale, and they still have the majority of capital from the last round, you can really start thinking about inorganic ways to grow,” Eric Liaw, a principal at IVP, said by phone from San Francisco.
Honest Co. raised $25 million in November from a consortium including IVP, according to a press release at the time. While the company has no immediate plans to do an initial public offering, that’s something it could consider down the road, Liaw said.
The Wall Street Journal previously reported Honest Co.’s funding round.