Update: Alerzo clarifies vehicle sale amid Moniepoint debt tussle

Following reports on X suggesting that e-commerce Alerzo was selling off its delivery fleet, the company’s Founder and Managing Director, Adewale Opaleye, has debunked the claims, insisting the company is only selling faulty and non-functional vehicles from its fleet of about 400 delivery vehicles.

The MD disclosed this in a chat with Technext with Technext.

Recall that a user, @Hon_Jesugbemi had posted that the company was offloading vehicles amid financial struggles. The post sparked conversations about the B2B e-commerce startup’s operations, prompting Alerzo’s founder and managing director, Adewale Opaleye, to reach out to Technext with clarifications.

According to the MD, the company is only selling faulty vehicles with many still in active use for operations. He said the sale of damaged vehicles shouldn’t be seen as unusual, as it’s a normal business practice to clear out assets that are no longer functional.

Opaleye also clarified that Alerzo doesn’t use motorcycles for deliveries, contrary to some reports circulating online.

However, the company is still battling a N4.38 billion debt to Moniepoint Microfinance Bank, with a Federal High Court in Lagos freezing Alerzo’s assets three weeks ago after the startup defaulted on a N5 billion loan taken in January 2025.

The Moniepoint situation remains unsolved

While Opaleye acknowledged the ongoing legal dispute with Moniepoint, he did not provide details, saying the company would release an official update soon.

“There’s a lot in all the publications we’ve read, but we will officially release a comment soon,” he told Technext, promising it would be “big news.”

The debt case centers on a N5 billion loan Moniepoint approved for Alerzo in early 2025 with an 18-month repayment term. Court documents show that by November 2025, Moniepoint issued a demand letter after Alerzo failed to service the debt.

By December, the outstanding balance stood at N4.38 billion with interest continuing to accumulate.

Justice Daniel Osiagor granted Moniepoint a Mareva injunction, restraining financial institutions from releasing any funds belonging to Alerzo or its associates up to the value of the claim. The order also forced banks to disclose account balances within seven days.

From funding boom to financial struggles

Alerzo raised over $20 million between 2020 and 2021 to build a B2B commerce platform delivering goods directly to small retailers across Southwest Nigeria. The company employed hundreds and operated across Lagos, Oyo, Ogun, and other southwestern states.

But operational costs mounted quickly. By 2023, Alerzo was laying off staff as the company struggled with the high cost of maintaining vehicles, paying drivers, and fueling operations while competing in a sector with razor-thin profit margins.

The N5 billion loan from Moniepoint was meant to provide working capital to keep operations running, but within months, Alerzo couldn’t meet repayment obligations.

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Opaleye said the current market for selling vehicles might be challenging due to the ongoing Moniepoint issues, but insisted operations continue with functioning vehicles still in use. He did not provide specifics on how many vehicles are being sold or whether the proceeds would go toward settling the debt.

Alerzo is not alone, several Nigerian startups that raised millions during the funding boom of 2020-2022 have struggled to stay afloat as investor money dried up and operating costs soared.

The difference is that Alerzo borrowed heavily from Moniepoint to survive, and now can not pay it back. The fintech company, which itself recently raised funding and expanded aggressively, is not backing down on recovering what it is owed.

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