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Arka’s deadline was February 1, 2023

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Arka

Next-gen packaging for e-commerce | Integrated, traceable, and sustainable
SaaS Delivery Services B2B Software
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$152,394
Raised
262
Investors
Successfully funded and closed on February 1, 2023.
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Problem Solution Product Traction Customers Biz. model Market Competition Vision Impact Funding Founders
About Team Press

Documents

Republic (OpenDeal Portal LLC, CRD #283874) is hosting this Reg CF securities offering by Arka Incorporated. View the official SEC filing and all updates:
Official SEC Logo Form C SEC.gov
Company documents
Arka Crowd SAFE Arka Form C Amendment 12.29.2022.pdf Arka Form C Amendment 11.21.2022.pdf Arka Form C.pdf
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Hear from some of the 262 investors in Arka


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Highlights


$1M+ raised
Company has previously raised over $1M in capital
$1M+ revenue
Company had over $1M in revenue in the past 12 months
Leading VC-backed
Company is backed by a leading VC firm
Notable angel backing
Company is backed by a notable angel investor


  • 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)

Note: This deal is being conducted pursuant to the SEC's temporary relief rules, and therefore has provided self-certified financials instead of reviewed financial statements in compliance with Reg CF Rule 201(bb).

* Click here for important information regarding Financial Projections which are not guaranteed.

Problem


Packaging orders are STILL recorded on a CLIPBOARD

  • Warehouses run out of boxes = millions lost in customer churn
  • Size constraints jack up freight, shipping and carbon footprint
  • Can't forecast or automate packaging orders without picking up the phone

Solution


Arka connects to any Warehouse (WMS) for maximum traceability

  • Never run out of packaging
  • Calculates optimal package to SKU ratio
  • Auto-replenish packaging

Product


Design and order packaging in just a few clicks

  • Packaging APl integrated right into your store, like on Shopify.
  • Eco-friendly and made in the USA.
  • Ships internationally.
  • Order as few as 10, arrives 10 days.

Traction


$1.5M GMV last year

Aiming for $6M in 2022*

Our forecasting includes both Digital and Non-Digital GMV.
We have some exciting things in the pipeline.


*Click here for important information regarding Financial Projections
which are not guaranteed.

Customers


Trusted by 2000+ brands nationwide

Customers appreciate our tech! ✨✨✨

Business model


Auto-replenish billions of boxes for third-party logistics companies (3PLs) 


SaaS Consumption Model


  • We make $5K/yr per seat + 15% off packages sold
  • Average Third-Party Logistics company (3PL) does $25M/year in packaging * 15% = $3.75M ARR with 20K to choose from

We’d be at $100M ARR with just 50 3PL sign ups! 

  • Current Gross Profit Margin of up to 85% 
  • Current Average Annual LTV of $1200 for DTC Merchants
  • Expected Average Annual LTV of $1800 in 2022 for DTC Merchants
  • Each 3PL is worth 500X as a one-to-many play

Market


One of the biggest
industries out there

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.

There's a TON of money in packaging, especially at the warehouse level. 

They lose customers when packaging isn't accounted for properly resulting in millions lost per year for each individual customer.

We make sure they never run out again with what we've built-

A Packaging API connects to any WMS:

  • 20,000 3Pls in the states to go after
  • Each 3PL ships $25M on average worth of product
  • Top 3Pls do closer to $700M at 15% CAGR
  • Each 3PL has a $500/customer avg cost across hundreds to thousands of customers per warehouse

***Market Research Firm, IBISWorld

Competition


We have an API. They don't.



Uline

  • No WMS connection.
  • Still sends catalogs.
  • Unbranded packaging only.
  • Zero sustainable options.



Lumi

  • No WMS connection.
  • No packaging algorithm.
  • Agency model.

Vision


Voyage to get every 3rd Party Logistics Company (3PL)


How we get there


  • Get us to $6M GMV for A round to raise $10M at $40M+ Val
    • 10 Additional 3PLs by EOY
    • Timeline Q3 2023
  • ROAS is 8X, fuel on the fire ‎🔥 ‎🔥 ‎🔥 
    • Increase Ad spend across all customer acquisition channels
    • SEO/SEM is optimized
  • Key hires to achieve next milestones
    • 2 Sales hires end of Q4 2022
    • CTO and 3 Devs beginning of Q1 2023
    • Ops lead end of Q1 2023


* Click here for important information regarding Financial Projections which are not guaranteed.

Impact


Sustainability drives capitalism

PwC found that 43% of consumers expect businesses to integrate sustainability in its operations to care for the environment.

Funding


$750k raised to date


Montage Ventures, VTF Zappos Fund, Rivet Ventures, Steve Huffman, AL Syndicate (Rob Ness), Stanford's Fund plus Angels at: Vistaprint, Shipwire, HP and 500 Startups.


Current ask:

Founders


Phillip Akhzar                                      

Founder & CEO

  • Industrial Manufacturing Engineer, Supply Chain Expert. 
  • Developed network of packaging manufacturers selling millions of packages per day. 
  • YC Alum / Cal Poly Alum

Deal terms


Valuation cap

$18,000,000

The maximum valuation at which your investment converts into equity shares or cash.
Learn more

Minimum investment

$100

The smallest investment amount that Arka is accepting.
Learn more

Maximum investment

$100,000

The largest investment amount that Arka is accepting.
Learn more

Funding goal

$250K

The maximum amount the offering can raise is $250K.
Learn more

Deadline
Arka needs to reach their minimum funding goal before the deadline ( ). If they don’t, all investments will be refunded.
Learn more
Type of security

Crowd SAFE

A SAFE allows an investor to make a cash investment in a company, with rights to receive certain company stock at a later date, in connection with a specific event. · Learn more

Nominee Lead

Chief Executive Officer of the Company (currently Phillip Akhzar)

Will direct the Nominee on certain matters like voting, amendments and conversions affecting the security.
Learn more

How it works

Documents

Republic (OpenDeal Portal LLC, CRD #283874) is hosting this Reg CF securities offering by Arka Incorporated. View the official SEC filing and all updates:
Official SEC Logo Form C SEC.gov
Company documents
Arka Crowd SAFE Arka Form C Amendment 12.29.2022.pdf Arka Form C Amendment 11.21.2022.pdf Arka Form C.pdf

Bonus perks

In addition to your Crowd SAFE, you'll receive perks for investing in Arka.
2 investors
Invest
$5,000
Receive
  • 20% OFF orders
  • Arka T Shirt!
  • Limited (8 left of 10)
Invest
$10,000
Receive
  • 20% OFF orders
  • Arka Hat and T Shirt!
  • Limited (5 left of 5)
1 investor
Invest
$25,000
Receive
  • 20% OFF orders
  • Arka Hat and T Shirt!
  • Shout out on our socials
  • Limited (4 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)

About Arka

Legal Name
Arka Incorporated
Founded
Dec 2015
Form
Delaware Corporation
Employees
6
Website
arka.com
Social Media
Headquarters
Google Map location of of Arka
1 Bluxome St. #305 , San Francisco, CA
Headquarters
1 Bluxome St., #305, San Francisco, CA, United States 94901

Arka Team
Everyone helping build Arka, not limited to employees

Profile picture of Phillip Akhzar
Phillip Akhzar
Founder
Profile picture of Zeeshan Haider
Zeeshan Haider
CRO
Profile picture of Charissa Wilce
Charissa Wilce
Customer Success
Profile picture of Haneya Hasan Zuberi
Haneya Hasan Zuberi
Head of Partnerships
Profile picture of Amelia Jane Lord
Amelia Jane Lord
Customer Success
Profile picture of Teddy Dinsmore
Teddy Dinsmore
Operations
Profile picture of Maia Benson
Maia Benson
Advisor ex Shopify
Profile picture of Gary Vaynerchuk
Gary Vaynerchuk
Advisor
Profile picture of Matthew Hertz
Matthew Hertz
Advisor ex Shyp
Profile picture of James Marks
James Marks
Advisor ex Whiplash
Profile picture of Nicholas Daniel-Richards
Nicholas Daniel-Richards
Advisor ex Shiphero
Profile picture of Nima Elyassi-Rad
Nima Elyassi-Rad
Advisor ex VC at Shippo
Profile picture of Zach Ware
Zach Ware
Advisor ex Zappos
Profile picture of Paul Thorogood
Paul Thorogood
Advisor Ex Packlane/Moo.com
11 more team members
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 Ex Packlane/Moo.com

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Arka

Arka successfully raised $152,394 from 262 investors on February 1, 2023
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