Along with the healthy lifestyle and cleaning products, which will soon include formula for babies and beauty products for moms, the startup is selling a feel-good mission. Like Toms Shoes Inc., Warby Parker Inc., Etsy Inc. and other e-commerce companies that use business to benefit social causes, Honest donates product and revenue.
The company established programs like diaper and crib donations as part of its business model, earning it a B Corp certification from nonprofit group B Lab.
“Nowadays it’s about corporate responsibility. The consumer today demands this of companies and we are doing our part to help in any way we can,” Mr. Lee said.
Although the company has expanded its retail distributors during the past year from Whole Foods and Costco to include Target, Buy Buy Baby and Nordstrom, just 20% of sales occur offline.
Mr. Lee said that mix is a good balance for the company for now and the company has intentionally held back on marketing efforts because it is now at capacity fulfilling orders.
The Series C funding round will be used to bankroll growth both in the U.S. and abroad.
Friday, August 29, 2014
Jessica Alba’s The Honest Co. Raises $70M, Preps for IPO