Vyro axes BNPL program as EV demand skyrockets

Vyro in the news: Australian virtual electric vehicle dealership Vyro is axing its buy now, pay later program and plotting another capital raise, as consumers wait up to two years for a new EV due to supply chain issues.

This article was originally posted on The Australian on 6 July 2022. You can read it here.

Following a soft launch in April, Vyro chief executive and co-founder Will Wise said his
company was on track to sell about 150 cars in its first year of operation, after initially hoping to
sell between 30 and 70.

The company, which recently completed a $1 million seed funding round led by Ellerston Capital
and Antler Australia, is now contemplating another capital raise after more than doubling its
sales targets.

“Any start-up or VC will tell you it’s a tough market to be raising capital,” Mr Wise said. “But our
sales growth has been so much stronger than expected which has led to a lot of organic
conversations with a number of investors about taking Vyro to the next level. So we’re taking a
look at it.”

Vyro has decided to axe its buy now, pay later financing scheme, Mr Wise said. The company is
stepping away from its 0 per cent interest finance with Plenti, which was one of only two BNPL
electric vehicle offerings in the market.

The other was an ACT pilot from energy technology platform Brighte, which announced last
month it was shedding 15 per cent of staff.

“The thing about BNPL is it’s designed to increase sales for industries that need more demand.
That’s not the case for EVs in Australia,” Mr Wise said.

“Demand has been absolutely unbelievable since our launch and we fully expect that to continue
as we move to more traditional finance.”

Vyro has selected Driva, an Aussie car finance fintech that acts like a broker, as its new finance
partner.

Vyro’s entry into the market comes as Australian interest in EVs reaches fever pitch. According to
the Electric Vehicle Council, sales of EVs tripled in 2021. Even before the Russian-Ukraine War
petrol price spike, 54 per cent of Australians said they would consider buying an EV for their next
car.

The company’s strategic adviser, Charlie Richardson, the former local managing director of
consultancy giant Accenture, said demand for EVs was still outstripping supply in Australia,
however, leading to enormous lead times for customers.

“Supply chain constraints and a lack of emissions policy means we’re not going to get EVs in
significant numbers for at least 18 months to two years,” Mr Richardson said.

“No amount of policy changes are going to change that, which is why demand will continue to
remain strong in Australia for EVs for the foreseeable future and Vyro is well placed to cater to
that.

“In the meantime, we should be sensitive to push-back on the utilisation of our emerging EV
infrastructure. Utilisation rates will be low but that’s an EV supply problem, not a lack of demand
from consumers.

“We also have an opportunity to be a bit more creative with how we provide charging
infrastructure.

“One way would be to rely on legacy hub points, petrol stations, and how best to fit them into the
future infrastructure footprint.”