Arka

Arka operates as a technology-enabled packaging platform, addressing the needs of e-commerce and direct-to-consumer businesses by streamlining the procurement of custom and unbranded packaging. Founded in 2015 by Phillip Akhzar, the company originated from his identification of inefficiencies in the packaging supply chain. Akhzar, a Y Combinator alumnus with a degree in Industrial Engineering, drew upon his experience at Boeing and as a serial entrepreneur to establish Arka. His background in supply chain logistics and a personal journey of overcoming adversity have shaped his approach to business.

The company's primary offering is an API that integrates with warehouse management systems (WMS) to automate the replenishment of packaging inventory for warehouses and third-party logistics (3PL) providers. This system utilizes AI to analyze packaging consumption, forecast future needs, and optimize the sizes of boxes used, aiming to reduce shipping costs and material waste. By analyzing how different package sizes affect shipping expenses, Arka provides data-driven recommendations for the most cost-effective packaging solutions. This model targets a significant operational challenge for warehouses, where running out of appropriate packaging can lead to lost revenue and customer dissatisfaction.

Arka's business model functions on a SaaS consumption basis, where it generates revenue through a margin on the packaging sold through its platform. The company aggregates the buying power of its numerous clients to act as a large wholesale distributor, which allows it to secure discounts from manufacturers and pass those savings on to customers. Clients can design and order a wide range of eco-friendly packaging products directly through the Arka platform, which integrates with major e-commerce platforms like Shopify, BigCommerce, and ShipBob. The product line includes custom mailer boxes, shipping boxes, and compostable mailers, all using FSC-certified paper and other sustainable materials.

Initially started as a platform for businesses to design and order custom packaging with low minimums, Arka has evolved to focus more on the systemic challenges within the supply chain. The company serves over 2,000 brands, from small businesses to larger enterprises, providing them with tools to enhance their unboxing experience. Arka has received funding through multiple rounds, including from investors like 500 Global and Evolution VC Partners, to support its growth and expansion.

Keywords: packaging automation, supply chain technology, e-commerce packaging, warehouse management system API, 3PL packaging solutions, custom packaging, sustainable packaging, Phillip Akhzar, Y Combinator, inventory replenishment, demand forecasting, logistics optimization, eco-friendly packaging, box manufacturing, direct-to-consumer brands, SaaS consumption model, custom mailer boxes, FSC-certified, packaging design platform, automated replenishment