Alerzo, a B2B e-commerce retail firm located in Nigeria, has raised $10.5 million in a Series A round led by Nosara Capital.
The round included FJ Labs and various family offices from the United States, Europe, and Asia, including Michael Novogratz’s.
Alerzo was founded in 2018 by Adewale Opaleye as a last-mile distribution network that assists retailers in receiving merchandise directly from manufacturers.
Alerzo, which officially launched in 2019, is aimed at helping street sellers and retailers in Nigeria’s south-western cities in obtaining household products more quickly and effectively.
Alerzo’s principal business is the distribution of FMCG items using a first-party relationship platform that allows suppliers to clear inventory more quickly while also giving Alerzo control over the supply chain and delivery.
Because of the lack of trust in the marketplace and the obligation to pay on delivery, Opaleye believes this was the most inclusive business model with the best economics.
Alerzo claims to have a network of up to 100,000 small enterprises, 90% of which are run by women. Ibadan, Ekiti, and Abeokuta, to name a few, are among the company’s tier-2 to tier-4 cities in Southwest Nigeria. It connects retailers with consumer brands including Unilever, Nestlé, Procter & Gamble, Dangote, and PZ, as well as local and multinational distributors.
Since its inception, Alerzo has raised more than $20 million. The Baobab Network and Signal Hill were among the first investors.
The additional funds, on the other hand, would be utilized to expand geographically to include northern Nigeria.
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