New investors Glade Brook Capital Partners and AllianceBernstein have joined existing backers Fidelity Management & Research Company, Wellington Management and Institutional Venture Partners in the transaction.
Alba, who has starred in films including Fantastic Four, Into the Blue and the Sin City franchise, set up The Honest Company to provide non-toxic household products – inspired by her first child. It currently produces products for the baby care, vitamin and home categories – amongst others.
The $100m of new capital, which represents its fourth intuitional investor deal, will be used to “accelerate” the company’s product roadmap. This will see the launch of its Honest Beauty line of skincare, colour cosmetics and hair care products. Funds will also go towards backing global expansion plans and improving online and wholesale distribution.
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Alba commented: “At The Honest Company, we dream big to fulfil our vision of a healthier and more conscious future. With this funding and our partners’ support, we are being given an opportunity to make an ever greater impact. We look forward to continuing our growth in the marketplace and meeting our customers’ evolving needs.”
The Honest Company’s previous funding transactions saw it raise $27m in March 2012, $25m in November 2013 and $70m in August 2014. It now has a range of 120 products and presence in 4,000 retail location sin the US and Canada.
Despite sales reaching $170m for 2014, and Alba being one of the most successful Hollywood actors or actresses to make the move into business, recent controversy surrounded the company’s sun tan lotion. Earlier in August, it was forced into a position of defence when consumers reported receiving “severe sunburn” despite using sun protection products.
Social media platforms such as Twitter served as a visual outlet for customers to voice concerns about the effectiveness of products. In a statement, The Honest Company declared: “Our sunscreen lotion was tested, by an independent third party, against the protocols prescribed by the US Food and Drug Administration’s, FDA, monograph for over-the-counter sunscreen products.
“The results showed that our product is effective and safe for use as an 80 minute water-resistant (FDA’s highest rating), SPF 30 sunscreen lotion in accordance with FDA regulations when used as directed.”
By Hunter Ruthven
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