Fishers-based Arrive AI files paperwork to go public
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Fishers-based smart-mailbox startup Arrive AI Inc. intends to go public via a direct listing on the Nasdaq Global Market, according to paperwork the company filed Thursday with the U.S. Securities and Exchange Commission.
Pending approval from both the SEC and Nasdaq, Arrive expects to become a publicly traded company in 2025 under the ticker symbol ARAI.
A direct listing allows current shareholders to sell their shares in the company on the public market. Unlike an initial public offering, companies that go public via direct listing do not sell additional shares to the public, meaning that they do not raise additional capital via such a transaction. But going public via a direct listing does provide the ability to raise future capital via additional stock sales.
To date, Arrive has raised close to $11 million: $7.3 million through crowdfunding and an additional $3.6 million from private investors.
In going public, the company will now have a broader avenue from which to raise capital, company founder and CEO Dan O’Toole told IBJ. “Just the credibility and the gravitas of being listed on the Nasdaq opens up so many doors,” he said.
Currently, Arrive has about 5,000 investors who hold a combined 29.1 million shares of the company’s stock. O’Toole is the company’s majority owner, holding 86% of its shares. He said he plans to sell a small number of his shares but intends to retain his majority ownership stake in the company.
Launched in 2019, the company originally did business as DroneDek Corp. It rebranded as Arrive Technology Inc. in 2023, and again as Arrive AI Inc. earlier this year.
Previously based in Lawrence, the company moved to Fishers last year and now operates from the Launch Fishers coworking facility. It currently has 20 employees and another 10 contract workers.
O’Toole said the company plans to significantly increase its employee count once it becomes public.
According the SEC filing, the company has not yet generated revenue but expects to begin doing so in 2025.
For the nine-month period that ended Sept. 30, the company posted a net loss of $3.2 million. For the full years of 2023 and 2022, the company posted net losses of $7.3 million and $2.4 million, respectively.
The company has developed a smart mailbox—a climate controlled, secure receptacle—for human or drone-based mail pickup and delivery. Arrive’s platform also provides tracking data, smart logistics controls and other information for shippers, delivery services and autonomous delivery networks.
Currently, Arrive AI is doing unpaid trials with a Fortune 500 logistics company, a specialty pharmaceuticals logistics company on the East Coast, and with what the SEC filing describes as a “Sunbelt innovation campus” to explore use cases for assisted-living communities. The filing does not identify any of these companies, citing nondisclosure agreements.
The company plans to first target customers in the medical industry, including hospitals, labs, clinics, doctors, pharmacies and large assisted-living operators, before later expanding to other markets.
This is Arrive’s third attempt to go public. In December 2023, Arrive announced its plans to go public via a merger with Vancouver, British Columbia-based Brüush, a publicly traded e-commerce company that sells electric toothbrushes. Arrive pulled the plug on the merger in June after Brüush was suspended from the Nasdaq Stock Market for failure to comply with Nasdaq’s qualifications for listing.
Prior to that, Arrive had planned to go public via an acquisition by a special purpose acquisition company, or SPAC. Arrive signed a letter of intent with that SPAC, San Francisco-based Pepperlime Health Acquisition Corp., in April 2023 but the deal fell apart later that year. Pepperlime ceased operations in March of this year.