15% per annum
8 instalments (every month from the 3rd month)
Khales Shop is a reseller of organic food items such as mustard oil, ghee, honey, spices, dry food, different types of nuts, etc. With your investment, the business will purchase the products in bulk, and will be able to make higher margin on sale. Investors can expect to get an ROI of 12.5%* over 10 months (15% annualized).
*subject to investment risk (details below)
💡 Is the business Shariah-compliant?
- The business model (selling grocery, dry food, mustard oil and other similar items) 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.
Investments have risks by definition, especially if they are halal. Please find possible risk details for this campaign in the “Risk” section below.
Mufti Habibur Rahman, owner of Khales Shop, completed Hifj from Rahmania Madrasa and completed Daora and Ifta from Chowdhurypara Madrasa. He has been the Imam of Baitul Mahmud Madrasa Masjid Complex (situated at Middle Badda) for 8 years now.
He has received the “Young Best Seller” award from the Koumi Uddokta Group of Bangladesh in February, 2023.He has been successfully operating in this line of business since 2017.
- Owner with 6 years+ of experience in this line of business.
- Established customer base.
- Good sourcing channels.
- Stable revenue stream.
The investment is for a period of 10 months, from March 2023 to January 2024.
Projected ROI (for the duration of project): 12.5%
Projected ROI (annualized): 15%
biniyog.io will NOT charge the investors any fees for this service.
if someone invests BDT 100k in the project, he/she can expect to receive a total of BDT 112.5k by the end of January 2024.
- Investors will go into a Murabahah agreement (sale contract) with Khales Shop for purchasing mustard oil, honey, spices, dry food, etc.
- It will be a “buy-and-sell” process where investors will first buy products through biniyog.io. Khales Shop will then buy those items from investors on credit and pay the amount over 10 months in 8 instalments.
- biniyog.io will act as an agent for the investors and buy the products, take necessary ownership and risk of asset possession on their behalf, and then sell to Khales Shop .
- biniyog.io has proposed a price to Khales Shop for the products after considering a minimum 12.5% profit on actual cost of product procurement. Khales Shop has agreed to it.
- Investors can expect to get their returns over 10 months in 8 instalments:
- 10% at the end of June’23
- 10% at the end of July’23
- 10% at the end of August’23
- 10% at the end of September’23
- 10% at the end of October’23
- 10% at the end of November’23
- 20% at the end of December’23
- Final 20% at the end of Jan’24
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 an advanced buy-and-sell (Bai’ Murabaha) agreement.
biniyog.io‘s Shariah advisors have approved the basis and application of this Bai’ Murabaha contract.
- Profit margin getting hurt due to heavy competition: The business sells products such as mustard oil, honey, spices, milk, etc. This particular market consists of many players. Thus, keeping a good profit margin on the products might become hard for Khales shop.
- Khales Shop’s strategy: The business has established a loyal customer base with their good quality of products. The business has stable repetitive customers specially for milk. The business has a total of 108 regular customers who purchase milk daily through home delivery.
- Expected political turmoil ahead of 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.
- Khales Shop’s strength: The business caters to customers in a certain locality. There is no denying that macroeconomic effects will impact small businesses. But it may impact locality based businesses to a limited extent since they are expected to be less vulnerable to disturbances in distribution of products.
biniyog.io will buy the products on behalf of investors first and secure ownership. The products will then be handed over to Khales Shop within a very short time frame.
Khales Shop would have the right to reject the products due to quality etc. The risk is expected to be minimal since Khales Shop themselves will be choosing the items before biniyog.io buys them.
This is a necessary risk to ensure Shariah compliance of the transaction.
biniyog.io has done in-house analyses of the projected returns of the business and they are expected to be able to repay on time, if not hugely impacted by macroeconomic issues.
Please note that the business may be given an incentive in the form of a discount on early repayment, which can only come in effect if the investors agree.
Following example is an illustration:
If the business repays within 9 months, the markup profit can be 12% (instead of 12.5%). This benefits both parties – the business has to pay back less and investors get their money back faster at a higher annual rate of return (e.g. 12% in 9 months means 16% per annum)
Khales Shop will share instalment cheques with biniyog.io. A personal guarantee security cheque will also be kept from the business owner.
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.
This campaign is now live on biniyog.io!The funding campaign has started. The target is BDT 5 lac.
Campaign closed!The funding campaign has been successfully closed before deadline after crossing the target of BDT 5 lac