Next-gen packaging for e-commerce | Integrated, traceable, and sustainable
Arka: Creating Value Through Next-Generation Packaging!
- Security Type
- Crowd SAFE
- Package Service, Ecommerce
- Min Investment
SAN FRANCISCO, CA
- Offering Date
- August 24, 2022
- Expected Close Date
- December 31, 2022
- Target Raise
- No. Investors
- Security Price
- Number of Employees
- Short Term Debt
- Cost of Goods
- Long Term Debt
- Net Income
Key Deal Facts
• Average month-on-month growth of 67.14% in 2022
• Pure software play with an API to connect and ship packaging globally
• Digital Ledger for 3PL/Fulfillment Warehouses to auto-replenish packages
• Revenue: $1.5M in 2021, forecasting $6M 2022*
• Sustainability focus as an Amazon SIOC, PFP and FFP certified provider
• Only packaging provider integrated with Shopify, Bigcommerce and ShipBob
• 1 previous oversubscribed round—totaling $750K raised (now raising $3M)
Use of Proceeds
- Intermediary Fees: 5%
- Hiring: 40%. To continue recruiting top talent to join our team, plans to hire 2 Sales Account Executive and 1 CTO
- Product Development: 4%
- Sales and Marketing: 25%
- General Working Capital: 26%. To support existing team and efforts that are pushing 30% compound monthly growth rate (CMGR). Monthly subscriptions for software and tools used for marketing and sales.
- Invest $5,000 Receive 20% OFF orders Arka T Shirt! Limited (10 left of 10)
- Invest $10,000 Receive 20% OFF orders Arka Hat and T Shirt! Limited (5 left of 5)
- Invest $25,000 Receive 20% OFF orders Arka Hat and T Shirt! Shout out on our socials Limited (5 left of 5)
- Invest $50,000 Receive 20% OFF orders Arka Hat and T Shirt! Shout out on our socials Meet and greet over zoom Limited (3 left of 3)
- Invest $100,000 Receive 20% OFF orders Arka Hat and T Shirt! Shout out on our socials Founder will fly to you and have lunch! Limited (3 left of 3)
Arka looks like an interesting and growing business, with some of the top names as customers and supported by savvy VC/ Angel investors.
All packaging industry is worth $850 billion today. For every $11 spent on product, merchants spend $1 on packaging. 3PLs are expected to grow 8% to $212 Billion in 2022. Ecommerce Retail is expected to reach $1.3 Trillion by 2025.
Growth of Ecommerce Retail will fuel greater demand for 3PLs and for packaging, which will create the perfect conditions for Arka to cement its role in supply chain for all ecommerce packaging.
Packaging orders are still recorded on clipboard today. There is no unified system to track packaging, resulting in running out of packaging or over- ordering by warehouses. Warehouses run out of boxes increasing customer churn cost. Size constraints too jack up freight, shipping, and carbon footprint.
- Packaging APl integrated right into stores, like on Shopify.
- Warehouses can auto-replenish, forecast and optimize packaging with Arka's software.
- Increases warehouse efficiency
- Helps reduce customer churn and reduce carbon footprint
- Packaging can be custom designed
- Key competitors include Lumi, Packlane, and Uline
- Arka has an API, but its competitors don't have it.
- Arka provides warehouse connectivity, demand-based orders, package size algorithm, and carbon neutral checkout. None of its competitors provide these features.
- Had 1,000 customers at the end of 2021, estimated to have reached 3,000 by the end of 2022.
- The company boasts of some notable customers including Shopify, Accel Partners, Google, Printful, Mattel, etc.
Management Team / Advisory Board Bios
- Phillip Akhzar | Founder
- Zeeshan Haider | CRO
- Charissa Wilce | Customer Success
- Haneya Hasan Zuberi | Head of Partnerships
- Amelia Jane Lord | Customer Success
- Teddy Dinsmore | Operations
- Maia Benson | Advisor
- Ex Shopify Gary Vaynerchuk | Advisor
- Matthew Hertz | Advisor
- Ex Shyp James Marks | Advisor
- Ex Whiplash Nicholas Daniel-Richards | Advisor
- Ex Shiphero Nima Elyassi-Rad | Advisor
- Ex VC at Shippo Zach Ware | Advisor
- Ex Zappos Paul Thorogood | Advisor