Duration

8 months

Min. Investment

৳ 10,000

Projected ROI

16% per annum

Risk Grade

B

Repayment

7 instalments (every month from the 2nd month)

Overview

Khushbu is a Chittagong-based producer and seller of different types of sweet and sour yoghurt. The business needs funds for purchasing packaging and raw materials. This is a “buy-and sell” (Murabahah) contract where investors can enjoy an ROI of 10.67%* over 8 months (annualized expected return 16%).

*subject to investment risk (details below)

Lalkhan Bazar, Chattogram, Bangladesh

Khushbu

৳ 250,000 Raised
৳ 0 Being Processed
0 Days Left
Raised:
100.00%
Goal: ৳ 250,000
The campaign is successful.
By Saif
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The Business

Accordion Content

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 Ramadan month is the business’s highest selling month due to the abnormal demand of yoghurt during this season. The business is planning to utilize this month by expanding their market. There are many departmental stores/ super shops located in Chattogram city where Khushbu has been unable to supply their product due to not having enough budget for attractive packaging. With enough funds, the  business will be able to acquire those shops that is likely to drive up the revenue significantly.    

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 (the kheer yoghurt). 
  • Almost zero lead time for payment collection.

The Contract

Accordion Content

The investment is for a period of 8 months, from February 2023 to October 2023.

Projected ROI (for the duration of project): 10.67%

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 BDT 110.67k by the end of October 2023.

  • Investors will go into a Murabahah agreement (sale contract) with Khushbu  for purchasing small yoghurt manufacturing and packaging equipment.  
  • 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 8 months in 7 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 Khushbu .
  • biniyog.io has proposed a price to Khushbu  for the products after considering a minimum 10.67% profit on actual cost of product procurement. Khushbu  has agreed to it.
  • Investors can expect to get their returns over 8 months in 7 instalments:
    • 25% at the end of April’23
    • 10% at the end of May’23
    • 10% at the end of June’23
    • 20% at the end of July’23
    • 10% at the end of August’23
    • 10% at the end of September’23
    • Final 15% at the end of October’23

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 an advanced buy-and-sell (Bai’ Murabaha) agreement.

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

Potential Risks

Accordion Content
    • Expanding into unmarked territory: The business is trying to push its products into departmental stores and super shops located at Chattogram city. But this particular sales channel is not yet tested by the business properly. Therefore, stepping into such territory might introduce uncertainties that might end up hurting the revenue of the business.
      • Khushbu’s strategy: The market response of Khushbu’s product is quite good. This good review of customers is one of the major reasons for Khushbu’s quick success within a span of only one and a half years.
             
    • 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 buying the equipment and packaging materials in bulk which allow them to avail wholesale price.  The business has verbal contracts with two dairy farms who are currently supplying milk to the business daily. Sugar price hike will not be a major headache for the business because the cost of sugar does not hold more than 10%-15% of the cost of making yoghurt. The business is heavily focused on making yoghurts while the making of sweets is only a small portion of the manufacturing process.

biniyog.io will buy the products on behalf of investors first and secure ownership. The products will then be handed over to Khushbu within a very short time frame.

Khushbu would have the right to reject the products due to quality etc. The risk is expected to be minimal since Khushbu  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.

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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 6 months, the markup profit can be 9% (instead of 10.67%). 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. 9% in 6 months means 18% per annum)

Khushbu  will share instalment cheques with biniyog.io. A personal guarantee security cheque will also be kept from the business owner.

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.

  • 08-02-2023

    This campaign is now live on biniyog.io!

    The funding campaign has started. The target is BDT 2.5 lac.
  • 30-01-2023

    The campaign has been extended