Jessica Alba's start-up The Honest Co. has raised $70 million, making the company worth almost $1 billion as it looks toward an initial public offering.
The eco-friendly baby product company launched two years ago and annual revenue is expected to be over $150 million this year, three times its 2013 sales, reported the Wall Street Journal. About 80% of its revenue comes from its subscription service that sends moms monthly deliveries of diapers and other non-toxic baby products.
Wellington Management Company led the Series C funding round, which included a handful of unnamed public financial companies and existing venture investors such as Lightspeed Venture Partners and Iconiq Capital.
As Honest Co. works toward an IPO, Wellington has the capacity to guide the company and provide insight on the metrics and traction needed to go public.
Alba, who was named one of Fortune's Most Powerful Women Entrepreneurs in 2012, co-founded the company in 2011 with the intention of blending good-for-you products with a feel-good social mission. The Honest Co. donates diapers and cribs as part of its business model, similar to the "buy one, donate one" model of startups like Warby Parker and Toms Shoes.
Honest Co. products are sold at outlets like Whole Foods, Costco, Target and Nordstrom, though only 20% of its items are sold offline. The company has been at capacity fulfilling orders, CEO and co-founder Brian Lee told the WSJ.
The company plans to use the new funds to grow its reach in the U.S. and abroad. It is currently in talks to expand to China, according to a report by Dow Jones VentureWire.
Honest Co. previously raised $52 million, including a $25 million funding round in November.