Honest Company, co-founded by actress Jessica Alba in 2012, sells baby, personal-care and beauty products. The Playa Vista-based firm announced a $200 million minority investment from private equity firm L Catterton. The company said the new capital will support global growth by opening new distribution channels in Europe. It has an exclusive retail distribution partnership with European beauty retailer Douglas that will begin in 2019. Honest has faced recent challenges, including a June 2017 marketing fraud lawsuit settlement for $7.35 million, a pulled IPO and reported lost acquisition talks with Unilever in 2016. Honest Company began by selling diapers online and has expanded into a broad lineup of non-toxic household and personal-care items. The company now offers about 120 products, including an Honest Beauty line of makeup, skin and hair products. Management said the new capital will be used to add to the Honest Beauty product lines. The funding round valued the business at more than $1.7 billion, and Jessica Alba owns roughly one-fifth of the company. Alba and co-founder Brian Lee initially invested about $6 million in seed funding. The company has faced product complaints—notably reports that its sunscreen did not work—which Alba addressed on the company blog, saying the product had been tested and approved.

Total raised

$300M

Funding rounds

2

Latest round

Equity

Latest activity

Jun 2018