Duration

6 months
Min. Investment

৳ 10,000
Projected ROI

15% per annum
Risk Grade

B
Repayment

100% after 6 months

Overview

MIB Lifestyle is a clothing manufacturer, looking to raise funds to increase their business size and cater to a larger client base. They need to purchase fabric for sewing and stitching, which they will keep as inventory and sell to retail shops early next year targeting Eid.

This is a “buy-and sell” (Murabahah) contract where investors can enjoy an ROI of 7.5%* over 6 months (annualized expected return 15%).

*subject to investment risk (details below)

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Mirpur, Dhaka, Bangladesh

MIB Lifestyle

৳ 450,000 Raised
৳ 0 Being Processed
0 Days Left
Raised:
90.00%
Goal: ৳ 500,000
The campaign is successful.
By saeed
15 Campaigns | 0 Loved campaigns

The Business

Accordion Content

Written by MIB Lifestyle – verified by biniyog.io ✅

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 has 3 revenue generating wings that are the shop, the online (Facebook page) and the wholesale wing. MIB has a factory with 50 employees. The business provides sewing service to many renowned brands such as Sailor, Twelve, Textmart, etc. 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.

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 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.

Syed Maksud Uzzaman is the chairman of MIB. He has completed his undergrad from England. He has also completed CIMA. Mr. Maksud also runs an import business. He has over 5 years of experience in the clothing business arena.

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. 

They have employed 50+ workers for manufacturing, and have in-house designers and a dynamic sales manager to cater to clients.

  • Educated partners with proper plans to grow and manage clients
  • Big brands like Sailor,  Texmart, Twelve etc as clients
  • Promising seasonal sales volume 

The Contract

Accordion Content

The investment is for a period of 6 months, from October 2022 to April 2023.

Projected ROI (for the duration of project): 7.5%

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 107.5k by end of April 2023.

  • Investors will go into a Murabahah agreement (sale contract) with MIB Lifestyle for purchasing clothing materials.
  • 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 6 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 7.5% profit on actual cost of product procurement. MIB Lifestyle has agreed to it.
  • Investors can expect to get their returns after 6 months:
    • 100% at the end of April’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
  • Exchange rate instability: Bangladesh imports most of the raw materials related to clothing manufacturing (e.g. tapes, zippers, yarn, fabrics). Considering the current volatility of the exchange rate, a major instability in the market may hamper imports. However, this will not just impact MIB Lifestyle in particular, but all small clothing manufacturers.
    • MIB Lifestyle is planning to tackle this by buying the fabric beforehand using investment, so that the business remains safe against future uncertainties.

  • Inflation rate: Bangladesh has faced an inflation rate of 7.68% that is the highest recorded in the last nine-years. Inflation rate has hiked unprecedentedly globally. Price of everything going up effect MIB Lifestyle‘s sales and due collection.
    • It is needless to say that inflation rate hike is a global issue currently. To keep the business stable and survive, small businesses have to take measures such as offering discounts, bundle offers etc. For MIB Lifestyle, this is easier to offer since they have their own outlet. This may reduce their margin by a little, but it will keep the business running.  

  • High season-based sales sensitivity: Just like most other fashion brands, MIB’s sales are also heavily dependent on Eid-ul-Fitr sales. Considering the current financial crunch the economy is going through, the business might not get their expected number of orders from the vendors and buyers.
    • MIB Lifestyle provides sewing services to top brands like Sailor, Twelve, Textmart, Vogue etc. This lessens their dependency on the seasonal sales to some extent.

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

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.

They have existing loans without interest from friends and family. However, that should not be an issue in repayment given their profit margins and ability to collect dues from retailers, especially after Eid season.
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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 100% within 6 months, the markup profit can be 9% (instead of 11.25%). 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 against current 15% per annum)

MIB Lifestyle 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.

  • 29-09-2022

    This campaign is now live on biniyog.io!

    The funding campaign has started. The target is BDT 10 lac.
  • 11-10-2022

    Updated target

    The business has updated their funding target to BDT 5 lac for 6 months