Alerzo, once regarded as one of Nigeria’s fastest-growing business-to-business (B2B) commerce startups, is now selling off its buses, motorcycles, and delivery vehicles following mounting financial pressure tied to a ₦4.38 billion debt owed to Moniepoint Microfinance Bank.
The startup, which previously raised $20 million from investors, had built its model around directly connecting manufacturers and distributors to small retailers. By cutting out middlemen, Alerzo aimed to deliver goods faster and at lower cost to neighborhood stores across Lagos, Oyo, Ogun, and other southwestern states.
At its peak, the company employed hundreds of workers and operated an extensive logistics network designed to move goods directly to small retailers. Its promise was simple:
🚚 Direct delivery
📦 Streamlined distribution
⚡ Faster inventory restocking
However, beneath that ambitious model was a costly operational structure. The company reportedly spent heavily on maintaining vehicles, paying drivers, fueling bikes, and managing warehousing — all while operating in a sector known for razor-thin margins.
Court Freezes Assets
In January 2025, Alerzo secured a ₦5 billion working capital loan from Moniepoint with an 18-month repayment timeline. But within months, repayments reportedly stalled.
By December 2025, outstanding debt stood at ₦4.38 billion, with interest compounding the burden. Following the default, a Federal High Court in Lagos ordered a freeze on the company’s assets.
Now, Alerzo’s logistics fleet — the backbone of its operations — is being liquidated as part of efforts to recover funds.
Growth vs. Cost Reality
Signs of distress had emerged earlier. By 2023, the company had begun laying off staff as operational expenses climbed amid high fuel prices and rising maintenance costs.
The B2B trade model depends on moving high volumes of goods quickly, which requires significant upfront investment in logistics infrastructure. While revenue can grow rapidly, margins remain tight, leaving little room for error during economic downturns or funding slowdowns.
Industry observers say the combination of expensive logistics, Nigeria’s inflationary pressures, and tightening funding conditions created a difficult environment for startups reliant on heavy asset deployment.
What This Means for Employees
The sale of Alerzo’s delivery fleet suggests either a last attempt to raise cash to offset the outstanding loan or a broader wind-down of operations. Without its vehicles, the company’s core distribution model becomes nearly impossible to sustain.
For employees, the development could signal further layoffs or a complete shutdown.
Social media reactions have reflected disappointment, particularly from small retailers and workers who benefited from the company’s expansion strategy. Some users noted that Alerzo invested in painting retail shops and branding partnerships, creating employment opportunities in the process.
A Cautionary Tale
Alerzo’s situation highlights the harsh realities facing logistics-heavy startups in Nigeria’s current funding climate. Rapid expansion fueled by debt and investor capital can deliver impressive growth — but sustainability ultimately depends on cost control, efficient operations, and consistent cash flow.
As asset sales proceed, the company’s future remains uncertain, marking a dramatic turn for a startup that once symbolized the promise of tech-driven wholesale trade in Nigeria.