Duration

9 months

Min. Investment

৳ 10,000

Projected ROI

16% per annum

Risk Grade

B

Repayments

6 installments (Starting from the 4th month)

Overview

Ad-din Organic Shop is a small wholesale business supplying various organic sourced products to businesses. Their main product is honey. The business is looking to expand its sales of a new balachao product along with its current honey business. They are looking to raise funds to purchase bulk amount of seasonal honey and balachao to keep the sales stream uninterrupted. This is a halal “buy-and-sell” campaign, and investors will be able to enjoy an ROI of around 12%* for an investment period of 9 months (approximately 16% per annum).
The business has repaid 100% repayments of its 1st funding campaign and 50% of its 2nd funding campaign raised through biniyog.io.

*Subject to investment risk (details below)

Jatrabari, Dhaka, Bangladesh

Ad-din Organic Shop [3]

৳ 1,129,500 Raised
৳ 0 Being Processed
0 Days Left
Raised:
112.95%
Goal: ৳ 1,000,000
The campaign is successful.
By Saif
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The Business

Accordion Content

Ad-din Organic Shop has been operational since 2020, with an aim to deliver organic products to businesses and consumers. Their main product is honey, which they source directly from honey collectors (মৌয়াল) and beekeepers.

They purchase in bulk and sell to small businesses at a mark-up. Thus they are helping a lot of small entrepreneurs around the country who have small demand and cater to niche local communities.

In the recent years, the business has gained significant traction. Additionally, the business has started to get big volume orders of honey. 
Ad-din Organic Shop is looking to raise funds for purchasing seasonal honey and balachao in bulk to serve the hiked demand. 
The business has repaid 100% repayments of its 1st funding campaign and 50% of its 2nd funding campaign raised through biniyog.io.

Address: House 5/21, Ward 65 Islamnagar, Matuail, Dakkhinpara, Jatrabari, Dhaka – 1365

Social Media: Addin Paikari Ghor

Md Mosharof Hossian is a young entrepreneur who started doing business in 2020 when he was just 20 years old. Over the last couple of years, he has gained a reputation among small businesses of being a supplier of good quality honey. 

He is currently enrolled as a 4th year student in English department (BA) in Dhaka Commerce College. 

Due to his family background and passion, he has always been keen on doing business. This passion has led him to pursue building a business by which he aims to be a supplier of organic and medicinal food materials with good quality.

  • Steadily increasing stream of monthly revenue.
  • Existing customer base who are mostly small and medium business owners.
  • Product (honey) requires minimal preservation.
  • Newly gained access to an exclusive customer-base of balachao.

The Contract

Accordion Content

The investment is for a period of 9 months, from the 2nd week of September 2023 to 2nd week of June 2024.

Projected ROI (for the duration of the project): 12%
Projected ROI (annualized): 16%

biniyog.io will NOT charge the investors any fees for this service. 

Example: if someone invests BDT 100k in the project, he/she can expect to receive a total of about BDT 112k within June 2024 in instalments. 

  • Investors will go into a Murabaha agreement (sale contract) with Ad-din Organic Shop
  • It will be a  “buy-and-sell” contract, where Ad-din Organic Shop will be mostly buying honey and balachao from investors at a markup price and pay the amount in pre-agreed instalments.
  • biniyog.io will act as an agent for the investors and buy the products and take necessary ownership and risk of asset possession on their behalf, and then sell to Ad-din Organic Shop.
  • biniyog.io has proposed that a markup price of 12% on actual cost will be charged to the business for the product, and Ad-din Organic Shop has agreed that it’s a fair price for both the business and the investors.
  • Investors can expect to get their returns in 9 months.

Shariah Compliance

Accordion Content

Investors appoint biniyog.io as an agent to deal on their behalf (Wakalah) and invest into the business through buy and sale of assets under a buy-and-sell (Bai Murabaha) agreement.

biniyog.io‘s Shariah advisors have approved the basis and application of this Murabahah contract.

Potential Risks

Accordion Content
  • Slight dependency on credit sales: The business often have to rely on some of its very regular customers by granting a them a little window of credit. This sometimes results in significant delays as the customers do not maintain the time limit of the credit window. This might result in delays in repayments for the investors.
    • Ad-din Organic Shop’s strategy: The business currently has a consistent sales with a mostly short credit windows.  Additionally, the business grants a very short period of credit facility to only a selective bunch of customers who are highly reliable. 
  • Exploring a new area of business: The business mainly has started working with the “balachao” product very recently. Sales of a new product often see a good hike in the beginning that is not sustainable most of the times. 
    • Ad-din Organic Shop’s strategy: The business has started to work with the “balachao” product mainly due to its high demand and good profit margin. As the owner of the business has been involved in online business and marketing for a significant amount of time now, he has done his market research on this particular product. Moreover, the business has a stable stream of revenue coming in from its sale of honey. 
  • Possibility of political turmoil following the upcoming election: Our assessment assumes that there will be some macroeconomic turmoil towards the end of 2023 before the general election. This may impact any business.

The instalment structure has been arranged such that the business can roll the inventory and cover the peak seasons of winter when honey is sold the most. biniyog.io projects that this will help the business run smoothly as well as meet payment deadlines.

biniyog.io will buy the products on behalf of investors first and secure the ownership. This is a necessary risk to ensure Shariah compliance of the transaction.

The transportation from the honey supplier will be done using a courier service. Occurrence of damage is highly unlikely – but investors will have to keep in mind that if any such damage does occur during transportation, investors will have to take responsibility for it.

Ad-din Organic Shop will share post-dated security cheque. Additionally, a guarantor will be introduced in the contract by the business to add an extra layer of safety for the investors.

Disclaimer

This investment opportunity is based on a first come first serve basis. Your investment is secured only after your transfer-proof has been received. If the investment quota is already filled, your transferred amount shall be returned.

Return of your capital is NOT guaranteed. Investment, by default, requires a risk appetite. Past performance is not a guaranteed indicator of future outcomes.

biniyog.io only acts as a consultant to the investor and the business, and does NOT manage funds for any party.

biniyog.io does risk assessment to a certain extent, but will NOT be liable if the business does not perform as per expectation.

For any questions, please use the chat icon on the right or leave a message.

  • 03-09-2023

    This campaign is now live on biniyog.io!

    The funding campaign has started. The target is BDT 10 lac.