Duration

12 months

Min. Investment

৳ 10,000

Projected ROI

16.5%

Risk Grade

B+

Overview

Ad-din Organic Shop is a  wholesale business supplying various organic sourced products to businesses. Their main product is honey. The business is seeking fund to increase its inventory for purchasing seasonal honey in bulk to increase overall revenue.

This is a halal “buy-and-sell” campaign, and investors will be able to enjoy an ROI of 16.5%* for an investment period of 12 months.


The business has repaid 100% repayments of its 1st funding campaign, 65% of its 2nd funding campaign, and 5% of its 3rd funding campaign raised through biniyog.io. The business will also be making complete repayment of its 2nd campaign before starting purchase for this new campaign.

*Subject to investment risk (details below)

Jatrabari, Dhaka, Bangladesh

Ad-din Organic Shop [4]

৳ 2,000,685 Raised
৳ 0 Being Processed
0 Days Left
Raised:
100.03%
Goal: ৳ 2,000,000
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 located in different districts of our country. 

They purchase in bulk and sell to 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 along with other segments of customers.

In recent years, the business has gained significant traction. Additionally, the business has started to get big volume orders of honey. Ad- din is trying to onboard big parties who serve corporate orders, supplies to renowned brands to increase the overall sales by a significant amount. 
The business is looking to raise funds for purchasing seasonal honey in bulk to serve hiked demand. 

The business has repaid 100% repayments of its 1st funding campaign, 65% of its 2nd funding campaign, and 5% of its 3rd funding campaign raised through biniyog.io. The business will also be making complete repayment of its 2nd campaign before starting purchase for this new campaign.

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

Explore: Facebook

FAQ:

💡 Is the business Shariah-compliant?

The business model (selling organic products) is Shariah-compliant.

However, according to our Shariah Advisors, biniyog.io and the investors will NOT be liable if the day-to-day operations of the business are not fully Shariah-compliant.

This is because investors will be going into a Murabaha (sale contract), not profit-sharing or partnership. Please find contract details in the “Contract” section below.

💡 Is there any investment risk involved?

Investments have risks by definition, especially if they are halal. Please find possible risk details for this campaign in the “Risk” section below.

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. 

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.

  • Notable increase in overall revenue
  • Good customer base who are mostly small and medium business owners
  • Product (honey) requires minimal preservation
  • 10+ regular wholesale customers

The Contract

Accordion Content

The investment is for a period of 12 months, from February 2024 to March 2025.

Projected ROI (annualized): 16.5%

biniyog.io will be charging investors an 8.33% fee on their profits. Example: If an investor invests BDT 100k and makes a profit of 18k in 12 months, biniyog.io will charge 1.5k as a service fee. This means investors will be keeping 91.67% of the profits generated. The net ROI for the investors will be 16.5% for 12 months after deducting biniyog.io’s fee. 

  • 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 buying lychee honey 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 a price to Ad-din Organic Shop for the products after considering a minimum 18% profit on the actual cost of product procurement and Ad-din Organic Shop has agreed to it. Investors will be getting a net of 16.5% profit after deducting biniyog.io‘s service charge on investor profit.
  • Investors can expect to get their returns over 12 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
  • Dependency on credit sales: The business often has to rely on some of its very regular customers by granting 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 consistent sales with mostly short credit windows.  Additionally, the business grants a very short period of credit facility only to a selective bunch of customers who have a good transaction history with the business.
  • Supply Chain Disruptions & Production Shortage: The availability of good quality honey could be disrupted due to factors like price fluctuations, supply conditions, or geopolitical issues. Production shortage often destabilizes the market and wholesalers can face product shortage which will ultimately result in  hurting their overall margin.  
    • Ad-din Organic Shop’s strategy: The business has built a good level of connections with many honey producers and collectors for different types of honey. This helps the business to enjoy information advantages. Moreover, the owner’s significant level of experience in this industry has helped shape a good sourcing channel over the years. This will mitigate such issues to a tolerable point.

The installment 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 a 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.

  • 15-02-2024

    This campaign is now live on biniyog.io!

    The funding campaign has started. The target is BDT 20 lac.