| Duration | 9 months |
|---|---|
| Min. Investment | ৳ 10,000 |
| Projected ROI | 17% annualized |
| Risk Grade | B |
Overview
Khushbu is a manufacturer and seller of different types of sweet and sour yoghurt. The business needs funds for purchasing powder milk in bulk for in-house production and reselling.
Investors can expect to get an ROI of 12.75%* over 9 months.
*subject to investment risk (details below)
Khushbu [2]
The Business
Khushbu sells in-house manufactured yoghurt and sweets. The business was started almost one and a half years ago. Three types of yoghurt (Kheer yoghurt, white yoghurt, sour yoghurt) and one type of roshmalai sweet are sold by the business. Among the mentioned items, Kheer yoghurt is the blockbuster product of the business. Khushbu sells to over 40 shops located in different parts of Chattogram city. All the transactions are made in cash except for a very few buyers who clear the payment within 1-2 days after delivery. The business collects raw materials such as milk, sugar, etc. from nearby locations. For instance, they purchase the milk from a dairy farm located at Chandmia road, Chattogram.
The business has a vast demand for milk powder. To avoid the price hike issue, the business is planning to purchase milk powder in bulk and store it for use. Moreover, the business plans to sell the milk powder product using its internal channels.
The business has repaid 100% of its repayment of the previous campaign.
Office/Factory Address: Lalkhan Bazar, Chattogram.
FAQ:
💡 Is the business Shariah-compliant?
- The business model (selling different kind of yoghurt and sweets) 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.
Mr. Abdur Rahman is the proprietor of Khushbu. He has been involved in business from the early stage of his life. He has experience in the poultry and fisheries business that he used to run some years ago. He shifted to making and selling yoghurt because of his prior knowledge of this line of business as his family has been involved in the sweet shop business.
He has a sweet shop at his village that he has inherited from his father. Along with that business, he has set up his yoghurt business at Chattogram on his own.
- Experienced owner with ample knowledge of the product and its market.
- Unique product that has good customer reviews and reputation in the market (the kheer yoghurt).
- Mostly cash transactions.
The Contract
The investment is for a period of 9 months, from November 2023 to August 2024.
Projected ROI: 17%
Example: If someone invests BDT 100k in the project, he/she can expect to receive a total of BDT 112.75k by August‘24.
- Investors will go into a Murabahah agreement (sale contract) with Khushbu for purchasing powder milk in bulk. It will be a “buy-and-sell” process where investors will first buy products through biniyog.io. Khushbu will then buy those items from investors on credit and pay the amount over 9 months.
- 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 Khushbu .
- biniyog.io has proposed a price to Khushbu for the products after considering a minimum 12.75% profit on actual cost of product procurement. Khushbu has agreed to it.
Shariah Compliance
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
- Looking to work with a new product: The business is trying to create a sales channel for trading milk powder to local food businesses. Working with a new product can often lead to heavy initial costs and system loss costs that might result in significant delay in repayments.
- Khushbu’s strategy: The business has done their homework (market research) for the product in the local market. The business has been operating in this market for a long time now. Therefore, Khushbu already has resources for sourcing and selling this new product. Moreover, the business will be mostly making cash transactions.
- Inflation and macroeconomic issues: Prices of materials are going up worldwide and coupled with the devaluation of taka, this is making products costlier. The price of food ingredients needed for making yoghurt such as milk, sugar, etc., small dairy product processing equipment and the price of packaging materials have become volatile at this time of uncertainty. Significant price hikes of such products can hurt the profit margin of the business badly.
- Khushbu’s strategy: The business will be mainly purchasing milk powder in bulk to mitigate the price volatility of this item. Moreover, the business will be trading the milk powder using its internal channels to generate additional revenue.
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.
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 considering their cash flow.
biniyog.io will buy the products on behalf of investors first and secure ownership. Khushbu would have the right to reject the products due to quality etc. The risk is expected to be minimal since Khushbu will choose the items before biniyog.io buys them.
Khushbu will share a security cheque. Moreover, a guarantor will be introduced in the contract for adding an extra layer of security 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.
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25-10-2023
This campaign is now live on biniyog.io!
The funding campaign has started. The target is BDT 4.5 lac. -
Successfully Completed!
The investment opportunity has been closed ahead of the deadline as it has successfully raised the target amount
