Information on the Target

AYRO, founded in 2018 by Marc Van Peteghem and Nicolas Sdez, is an innovative industrial start-up that specializes in the design and implementation of Oceanwings®, a cutting-edge wing-sail technology aimed at enhancing maritime transport. The company emerged as a spin-off from the renowned French naval architecture firm VPLP. AYRO's flagship product, Oceanwings®, is engineered to significantly reduce fuel consumption in large cargo vessels by up to 45%, contributing to a more sustainable shipping industry.

AYRO's technology has its roots in VPLP Design's work on the BMW Oracle racing sailboat, which clinched victory in the 2010 America’s Cup. Following the successful testing of a prototype in 2017, AYRO has advanced its offerings, and its systems have been subsequently fitted on various vessels, promoting zero-emissions technologies. The recent strategic contract to provide four Oceanwings363® wingsails to the under-construction roll-on, roll-off vessel “Canopée” exemplifies the firm’s commitment to revolutionizing maritime propulsion.

Industry Overview in France

The international shipping industry is pivotal to global trade, accounting for approximately 90% of all goods transported across borders. However, it is also a significant contributor to environmental challenges, responsible for over 3% of worldwide CO2 emissions as of 2020. Conventional cargo vessels, particularly container ships, are heavy users of low-grade fossil fuels, consuming more than 60,000 gallons daily, thus generating harmful emissions that are detrimental to the planet.

As international shipping activities continue to expand, it is projected that this sector could be responsible for 17% of global greenhouse gas emissions by 2050 if mitigation strategies are not implemented. This mounting concern has prompted the adoption of stricter environmental regulations, including the International Maritime Organization's (IMO) target to reduce shipping emissions by 45% by 2050.

In response to these challenges, innovative technologies such as AYRO's Oceanwings® system present promising solutions. By harnessing wind propulsion, these systems not only cut down fuel costs for shipping companies but also align with burgeoning environmental standards. It positions itself well within the maritime transport landscape, which is critically examining its carbon footprint as a result of regulatory and market pressures.

The Rationale Behind the Deal

The investment of €10.5 million in AYRO by Ocean Zero, Bpifrance, and Mer Invest underscores a collective effort to advance sustainable maritime technologies. Investors are drawn by AYRO's potential to transform the shipping industry with its innovative solutions that address pressing environmental concerns while reducing operational costs for shipping companies.

The funding will be deployed towards further developing and industrializing Oceanwings®, establishing a production facility in Caen-Blainville, Normandy, and enhancing sales and marketing efforts. This strategic allocation of resources is expected to accelerate AYRO’s growth trajectory and solidify its market position.

Information about the Investor

The investors, including Ocean Zero, Bpifrance, and Mer Invest, are key players in promoting sustainable development and responsible investments. Ocean Zero specializes in funding innovative solutions focused on reducing marine sector emissions, while Bpifrance is a state-backed investment bank that supports French companies in their growth endeavors across a variety of sectors.

Mer Invest, a firm dedicated to maritime investments, aligns with these values, focusing on fostering technological advancements that support sustainable practices in marine transport. Their collective backing of AYRO not only demonstrates confidence in the company’s future but also showcases a commitment to environmental stewardship within the maritime industry.

View of Dealert

The investment in AYRO appears to be a sound decision considering the increasing regulatory focus on emissions reductions in the shipping industry. AYRO’s unique technology not only offers a solution to meet impending regulatory requirements but also positions itself advantageously against traditional fuel consumption methods, thereby attracting a larger customer base as sustainability becomes a priority.

Additionally, the rising costs of fossil fuels and volatility in energy markets bolster the case for wind propulsion systems as a means of cost-effectiveness. As shipping companies look for alternatives to mitigate operational costs while adhering to environmental regulations, AYRO’s product stands to gain significant traction in the marketplace.

Furthermore, the backing from prominent investors signals a robust confidence in AYRO’s business model and long-term viability. This collaboration can pave the way for enhanced innovation and market penetration. With the right execution of their industrialization and marketing strategies, AYRO is poised to become a leader in sustainable maritime technologies.

In conclusion, if AYRO successfully capitalizes on its current momentum and expands its production capacity while maintaining its focus on innovation, it could significantly alter the course of the shipping industry. This investment holds promise, making it a strategic move for investors looking to engage in the green transition of maritime transport.

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