Arka

Next-gen packaging for e-commerce | Integrated, traceable, and sustainable

Print
Claim My Business
Form C

Arka: Creating Value Through Next-Generation Packaging!

View on Republic
Security Type
Crowd SAFE
Categories
Retail, Transportation & Storage
Min Investment
$100
Location
SAN FRANCISCO, CA
Offering Date
August 24, 2022
Expected Close Date
December 31, 2022
Target Raise
$107.10K-$250.00K
No. Investors
264
Security Price
$1
Website
arka.com
Number of Employees
6
Cash
$1,059,706
Revenue
$1,481,333
Short Term Debt
$164,118
Cost of Goods
$444,400
Long Term Debt
$19,447
Net Income
$17,634

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.

Perks

  • 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)

Recommendations

Arka looks like an interesting and growing business, with some of the top names as customers and supported by savvy VC/ Angel investors. 

Industry Discussion

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.

Technology Analysis

  • 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

Competitor Overview

  • 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. 

Customer Analysis

  • 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 
Amount Raised : $153,534
Reveal the Score by Voting
＿
Additional ratings from other users are needed to determine a viable CrowdScore for this deal.
The "CrowdScore" for this deal is determined by user ratings and other factors using our proprietary algorithm.
ⓘ
The overall viability and scalability of the business concept as well as the ability to drive the concept to profitability over time.
Business Idea
ⓘ
The progress made thus far in demonstrating that the business has viability, a customer base or other business traction.
Business Traction
ⓘ
The experience of the management team in running, scaling and/or exiting a business that required similar skills to execute the business plan.
Management Team
ⓘ
The value of the company compared to similar companies raising money from investors.
Valuation

Security Description

An equity crowdfunding specific version of a SAFE used by crowdfunding portal Republic. Upon conversion (if and when that happens), investors may receive special shares with limited rights that do not show up on a company’s cap table. The issuer may roll over and not convert shares at the next financing round causing investors to lose out on some upside.

Research Reports

Become a Reporter
Read Our Research Disclaimer

0 Comments

Post Comment