Duration

8 months

Min. Investment

৳ 10,000

Projected ROI

15% per annum

Risk Grade

B

Repayment

2 installments (5th and 8th no. month)

Overview

MIB Lifestyle is a clothing manufacturer, looking to raise funds to increase product inventory to cater to a larger client base. They need to purchase fabric and accessories needed for making punjabi and ladies clothing items, which they will keep as inventory and sell to retail shops located both inside and outside Dhaka.

The business has successfully closed its first campaign and has repaid the repayment on time. This campaign is an extended version of its last campaign.

 

This is a “buy-and sell” (Murabahah) contract where investors can enjoy an ROI of 10%* over 8 months (annualized expected return 15%).

 

*subject to investment risk (details below)

Mirpur, Dhaka, Bangladesh

MIB Lifestyle [3]

৳ 400,000 Raised
৳ 0 Being Processed
0 Days Left
Raised:
100.00%
Goal: ৳ 400,000
The campaign is successful.
By Saif
63 Campaigns | 0 Loved campaigns

The Business

Accordion Content

MIB Lifestyle is a clothing brand that sells in-house made products. With an average yearly sales of around 1 crore, the owners of MIB are looking to expand their business by delivering more products and generating more revenue.

The business makes sales through its online (Facebook page) and the wholesale wing. The business also sells products at district level fashion brands and show-rooms such as Gobindo store, Bilash store, Apogee, This fashion, Janata trading etc. MIB had a factory with 50 employees. The factory has been sold to the managing director of the business to reduce the operational hassle and focus on core sales 

The business has successfully closed its first campaign and has repaid the repayment on time. This campaign is an extended version of its last campaign.

Office/Factory Address: 1146 East Monipur, Khaner Mor 1216 Dhaka, Dhaka Division
Explore:    Facebook Page

FAQ:

💡 Is the business Shariah-compliant?

  • The business model (selling punjabi, ladies clothes and other 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.

💡 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.

Mahadi Hasan Rony is the Managing Director of MIB. He has completed his undergrad from BUFT. He has over 5 years of experience in this industry. He has a good level of networking with many fabric traders and importers. He has been taking care of MIB’s supply-chain till now with a good track record. 

  • Educated managing director with proper plans to grow and manage clients
  • Vast network of customers all over the country
  • Promising seasonal sales volume
  • Completed 100% repayment on-time in previous investment

The Contract

Accordion Content

The investment is for a period of 8 months, from October 2023 to May 2024.

Projected ROI (for the duration of project): 10%

Projected ROI (annualized): 15% 

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

Example: if someone invests BDT 100k in the opportunity, he/she can expect to receive a total of BDT 110k by end of May 2024.

  • Investors will go into a Murabahah agreement (sale contract) with MIB Lifestyle for purchasing fabric and clothing accessories.
  • It will be a “buy-and-sell” process where investors will first buy the products through biniyog.io. MIB Lifestyle will then buy those items from investors on credit and pay the amount after 8 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 MIB Lifestyle.
  • biniyog.io has proposed a price to MIB Lifestyle for the products after considering a minimum 10% profit on actual cost of product procurement. MIB Lifestyle has agreed to it.
  • Investors can expect to get their returns over 8 months in 2 instalments:
    • 15% in February’24
    • The final 85% in May’24

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
  • Not having an in-house production facility anymore: The business had its own manufacturing facility but it was recently sold to another party who will be providing manufacturing service to the business. Not having its own manufacturing facility might result in a significant downturn in the overall profit margin of the business. Moreover, the business might lose the negotiation power to the manufacturing service provider. This will drive up the overall production cost of the product resulting in less profit margin for the business.
    • MIB Lifestyle’s strategy: The manufacturing portion of the business was bought by the business’s managing director. So, the business already has a good understanding with him and the chance of manufacturing service cost going up unaccountably is very low. Additionally, the business is looking to keep things as before the manufacturing facility was sold off. Therefore, the business should be able to keep its expected profit margin.    
  • Exchange rate instability and dollar shortage: Bangladesh imports most of the raw materials related to clothing manufacturing (e.g. tapes, zippers, yarn, fabrics). Considering the current state of dollar reserve, imports of any sort of products may get hampered. However, this will not just impact MIB Lifestyle in particular, but almost all kinds of businesses..
    • MIB Lifestyle’s strategy: MIB Lifestyle is planning to tackle this by buying the fabric and accessories beforehand using the investment raised through biniyog.io, so that the business remains safe against future uncertainties.
  • High season-based sales sensitivity: Just like most other fashion brands, MIB’s sales are also heavily dependent on seasons such as the most selling season is the time of Eid-ul-Fitr. Moreover, the business often has to allow partial credit to some of its old and loyal customers (retailers). 
    • MIB Lifestyle’s strategy: The business tries to increase its sales not only during the Eid-ul-Fitr but also during other peak times such as Eid-ul-Adha, winter, etc. This lets the business mitigate the possible cash crunch it would’ve fallen in if it only targeted the Eid-ul-Fitr. The business also works with ladies clothing items that has a stable flow of sales throughout the year.

biniyog.io will buy the products on behalf of investors first and secure ownership. MIB Lifestyle would have the right to reject the products due to quality etc. The risk is expected to be minimal since MIB Lifestyle 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 considering their cash-flow.

MIB Lifestyle will share instalment cheques with biniyog.io. A personal guarantee security cheque will also be kept from the business owner along with a guarantor.

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.

  • 31-08-2023

    This campaign is now live on biniyog.io!

    The funding campaign has started. The target is BDT 4 lac.