Natural personal care and beauty brand The Honest Company is said to working on an initial public offering. Bloomberg has reported that the company is working with the Goldman Sachs group and Morgan Stanley on the move.
The Honest Company was founded in 2011, initially selling baby care products. The company has since expanded into personal care, home care and, most recently, beauty products. Its products were initially available through its website, with its reach now expanded into Whole Foods Markets and Target stores in the US.
As it has grown, The Honest Company has attracted a total of around $220m in investment and it is now estimated to be worth $1.7bn. In August 2015 it secured $100m in Series D financing to support the launch of its skin care and colour cosmetics range.
However, the company has encountered a number of difficulties in recent months. Many consumers complained that its sun care were ineffective in summer last year. More recently the company also faced a lawsuit following accusations that its “natural” and “organic” labels were misleading consumers.
