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Honest Company in new private fundraising round: sources
[NEW YORK] The Honest Company, maker of eco-friendly diapers co-founded by actress Jessica Alba, has launched a new private fundraising round that could value it at between US$1.5 billion and US$2 billion, according to people familiar with the matter.
The fundraising is another step in the company's path towards an initial public offering that is currently expected as soon as the second half of 2016, the people said this week.
The Honest Company could use the money it raises in the latest fundraising round to fund growth initiatives that include the launch of its newly announced makeup line, pop-up shops, kiosks and new hires, the people added.
The sources asked not to be identified because the fundraising is not public. An Honest Company spokeswoman had no immediate comment.
The Honest Company was launched in 2012 by the 34-year-old Alba, children's non-profit veteran Christopher Gavigan, and serial entrepreneur Brian Lee.
Its products include diapers, nursing pillows, vitamins and non-toxic household products. These are sold on Honest.com and in more than 2,500 retail locations in the United States and Canada.
The Honest Company raised US$70 million in August 2014 in a previous fundraising round, which valued the company at the time at around US$1 billion.
The company recently had some negative reviews in social media regarding the efficacy of its sunscreen. Ms Alba responded this week with a note saying the company takes sunscreen protection seriously and that its products meet testing requirements.