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Jessica Alba's Honest Co. Taking Its Sweet Time Going Public

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Jessica Alba's Honest Co. Taking Its Sweet Time Going Public

Jessica Alba's Honest Co., the shopping startup best known for creating diapers, sunscreens and cleaning products, is not in a rush to go public, reported Bloomberg, referring to the sources close to the company.

Honest Co. posted revenue of about $275 million in 2015, significantly higher than the $150 million reported in the previous year. Moreover, it has a solid amount of cash on hand, as the majority of the raised $222 million from Glade Brook Capital Partners, Fidelity Investments, Institutional Venture Partners, Lightspeed Venture Partners and others are still on the balance sheet, as stated by the CEO Brian Lee and cited by Bloomberg.

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According to Lee, the company is not currently starving for the IPO and considers the offering a financing and branding event for them.

However, Lee avoided to make any comments on the rumors reported earlier this year, according to which Honest is working with Goldman Sachs Group Inc (NYSE: GS) and Morgan Stanley (NYSE: MS) on such an offering.

Referring to Lee, Bloomberg said the company stands behind the safety of its infant formula and it "learned a lot" from last year's complaints about its sunscreen and has since worked to educate consumers on how to use it. Online sunscreen sales rose 50 percent year-over-year in 2Q2016 and sunscreen sales at Costco Wholesale Corporation (NASDAQ: COST) increased 42 percent during that same period.

Posted-In: Brian Lee fidelity investments Glad Brook Capital Partners Honest CoIPOs Media Trading Ideas General Best of Benzinga

 

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