A pioneering UK engineering company building iconic adventure products and experiences.
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | www.arksen.com/ |
| Sectors | Automotive & Transport Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | 11055912 |
| Incorporation date | 9 Nov 2017 |
Investment summary
Business highlights
- Total Addressable Market - $1.37tn
- Revenue since 2022 - £18,000,000*
- Potential Sales Value Pipeline - £156m+
- Experienced team led by previously exited Founder
Key features
Idea
Introduction
We create iconic adventure products with purpose: designed for those curious enough to explore our planet and determined to live life to its full. Minimalistic design, engineered for the future and built with a complete lack of compromise.
We’re building a world powered by adventure, experienced through awesome machines, apparel and life-changing experiences. We’re on a mission to engineer products and systems built for a circular economy, scalable, robust, reliable, and recyclable at the end of life.
At Arksen we’ve built a strong and growing community of over 40,000 individuals – inspiring them through exceptional storytelling via in house production.
We have around 80 products across marine, overland and apparel, selling directly to customers and via a growing network of dealers. We plan to scale our business by growing the size of our community and our distribution network.
We’re developing a unique approach to building an adventure ecosystem – through a purpose first and highly experiential offering, comprising innovative business models.
Substantial accomplishments to date
· Set up and financed by Jasper Smith in 2019 the company has grown rapidly, increasing revenue to £18m over the last 2 years, with £10m reported in 2022*.
· With two large vessels and multiple smaller vessels delivered the company has a sales pipeline representing a potential value of over £156m.
· The company raised its first institutional round through Vala Capital in 2020, one of the UK's leading early-stage investors. Vala continues to invest in the business alongside a number of high-net-worth investors.
· Arksen’s community and social followings have grown to over 40,000 across all channels and continue to grow giving the brand good access to potential customers and influencers in the sector.
· Arksen has developed highly innovative business models to include co-ownership and adventure club subscription, providing one off and recurring income.
· In 2023 the company launched Arksen Overland, its automotive offering, specialising in off grid campers, upcycled Land Rovers and several innovative machines which are planned to be announced over the next 12 months.
· In 2023 the company launched Arksen Apparel, its line of high-performance gear, designed by our leading in-house design team and manufactured in Europe using the some of the most advanced and innovative fabrics available.
· In 2024 the company intends to launch a number of exciting new product lines and to invest significantly in marketing, building on approximately £12m of investment raised over the last 3 years.
*Based on unaudited management accounts.
Monetisation strategy
1) Dealer Networks:
Arksen has 8 dealers today in the UK, USA, Japan & Europe and aims to grow this to 80 over the next few years. Dealers often commit to minimum order quantities from 2-10 vessels per year enabling scalable revenues in a predicable manner.
2) Direct sales:
Leads are generated through social & online platforms allowing us to sell direct. Our aim is to increase online brand presence significantly over the next few years.
3) Brokered sales:
Our larger vessels and some of our overland vehicles are sold through yacht brokers & agents.
4) Innovative business models:
The Arksen Boat & Adventure Club is a member service that provides access to Arksen products via subscription, the “Netflix of Adventure''.
The co-ownership programme offers full access to Arksen’s flagship vessel at a fraction of the cost of sole ownership. This scheme is designed to offer a hassle-free alternative to full ownership whist Arksen provides management.
5) Life affirming experiences:
Arksen Adventures offers unique, hand-selected adventures & enthralling experiences.
Use of proceeds
The company is raising up to £6m and a minimum of £2m via retail and institutional investors. Proceeds from the raise will be used to accelerate Arksen brand and product marketing in the UK and internationally as well as to fund working capital. Please see the infographic below for further information:
Key Information
Share Classes:
The company currently has two classes of shares, Ordinary Shares and B Ordinary Shares. All investors in this round, including Seedrs investors, will be receiving Ordinary Shares.
The rights attached to the share classes are as follows:
Ordinary shares:
o Voting rights
o Dividend
o Capital distribution rights (see below)
B Ordinary shares
o Voting rights
o Dividend
o Capital distribution rights (see below)
Capital distribution:
On an exit or liquidation etc, all proceeds distributable to shareholders shall be allocated as follows:
- Any proceeds equal or less than £30m will be distributed between Ordinary shareholders pro-rata;
-Any surplus proceeds will be distributed between all Ordinary and B Ordinary shareholders pro-rata.
Founders Interests:
Jasper Smith, Founder and Executive Chair of Arksen, also holds an NED role at the following businesses:
1. The Sustainability Group Limited (11751567)
2. Revving Limited (12735446)
Jasper is also Co-Founder of Vala Capital and sits one investment committee at the fund. Vala Capital are an investor shareholder in Arksen, and have invested in this funding round.
The above roles require approximately 4 hours per month. Jasper is committed on a full-time basis to Arksen.
Jasper Smith is also an indirect shareholder in Arksen through GMV Nominees, a family investment vehicle.
Services from Related Parties:
Arksen has a shareholding in, and relies on services from, the following companies:
1. Cetus Holdings Ltd (10983638) designs and builds the Arksen Discovery Series. Arksen Ltd holds a 5% stake in the company.
2. Moda Industries Ltd (12280499) designs and builds the Arksen Overland products. Arksen Ltd holds a 19% stake in the company.
3. The Fashion Incubator Ltd (11134041) designs and builds the Arksen Apparel range. Arksen Ltd holds a 4% stake in the company.
Jasper Smith is a shareholder of, and acts as a Director of, each of the above companies, each of which have an independent board.
Material Debt:
The company has the following debt facilities:
1. £600,000 Floorplan Financing facility with DF Capital, enabling Arksen to buy and stock small boats for distribution to their dealer network. Funds are repayable on sale of the vessels concerned. This loan has a charge over company assets.
2. Director’s Loan of £429,000 from Jasper Smith. The loan was entered into on 11/11/2022 and is to be repaid on 11/11/2025 or, if later, the date upon which the Company raises £5m of new investment from the date of the loan.
The funds raised in this round will not be used to repay these facilities.
Investor Perks
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
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