History
Company co-founder Jessica Alba was inspired by the 2008 birth of her first child and her own history of childhood illnesses to create a company that provided an alternative to baby products with ingredients such as petrochemicals and synthetic fragrances.[8] The company was launched in 2012 with 17 products.
In 2013, The Honest Company's sales reached $50 million.[9] Honest raised $70 million from venture capitalists in the summer of 2014 in preparation for an initial public offering.[10][11] The financing put a value on the company of $1 billion.[9] Prior to the 2014 round of financing led by Wellington Management Company, the company had raised $52 million in financing from ICONIQ Capital, General Catalyst Partners, Institutional Venture Partners and Lightspeed Venture Partners.[12]
In 2016, The Honest Company moved its headquarters from Santa Monica to the Playa Vista neighborhood of Los Angeles.[13] The following month, it announced a new round of funding that generated an additional $100 million of venture capital, implying a valuation of $1.7 billion.[14] In late 2015, the company acquired Alt12 Apps, the makers of popular apps such as Baby Bump, Pink Pad, and Kidfolio.[15]
In March 2017, The Honest Company announced that Nick Vlahos would replace Brian Lee as chief executive officer. Vlahos worked on several Clorox brands, including Burt's Bees, Brita and Green Works. Brian Lee would remain on the board in an advisory role.[16]
In October 2017, The Honest Company closed a series E round of funding. After settling two lawsuits in the summer of 2017, the valuation was set at $19.60 per share down from the Series D shares sold in 2015 at $45.75, and market value of less than $1 billion.[17]
In April 2021, The Honest Company officially filed for an initial public offering.[18] The company began trading on the NASDAQ exchange with ticker symbol HNST on May 5, 2021.[19] The IPO raised $412.8 million.[20]
In April 2024, Alba stepped down from her role as Chief Creative Officer,[21] a leadership change that led to the removal of her name and likeness from certain packaging and a short-term market reaction in the company’s shares.[22][23]
