13-15% per annum
After 4 months
Small retailers require financing to manage and expand their business. They face financing problems while managing inventory, sometimes unable to stock necessary items. This investment model will help them purchase products at a marginal mark-up, which they will repay within 7 days. They will purchase again after 7 days if necessary.
This is a “buy-and sell” (Murabahah) contract, which will be re-used every week for 16 weeks. Investors can expect to get an ROI between 4.5%-5.0* (13-15%+ annualized) over 16 weeks.
*subject to investment risk (details below)
Retail Stores [Portfolio 2]
The investment will be used to purchase and sell products to small retail businesses. The retail businesses will be selected by partnering up with SupplyLine who are working in the retail industry.
SupplyLine serves retailers by giving them the best prices for stocking products, and offers collateral-free invoice finance to help them maintain healthy cash flow. They procure the products from renowned FMCG brands having a distributor license, and using their distribution channel, they supply the products to retailers. They have an order management tool too, which they analyse to help provide collateral-free financing. They have a unique business model which is backed by Accelerating Asia and Hustle Fund.
The retailers who will be given access to financing will be selected based on good location and proper transaction history.
SupplyLine and biniyog.io has analysed complete transaction data of shortlisted retailers according to regular assessment process. After filtering out, retailers with regular repayment records and high volume of transactions have been selected.
Website link: Click here to visit
Media Coverage: View here
Crunchbase link: Click here to visit
Office address: 270, Old Sonali Bank Building, Ibrahimpur Primary School Road, Dhaka – 1216
💡 Is the business Shariah-compliant?
The business model (trading grocery items and FMCG goods) 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.
This information is sensitive and confidential, and details of Selected Retailers will only be shared with investors upon their request.
- Strong connection management with the customers and the suppliers
- Business model backed by Accelerating Asia and Hustle Fund
- Selected Retailers have good traction record
The investment is for a period of 16 weeks, expected from April 2023 to August 2023.
(Exact date will be finalized after financing is complete)
- Projected Return on Investment (ROI): 4.5% – 5.0%
- Projected ROI: 13-15% per annum
biniyog.io will charge the investors 10% of profit for this service. Investor expected return is shown after deducting biniyog.io‘s charge.
Example: if someone invests BDT 100k in the project, he/she can expect to receive a total of BDT 104.5 – 105.0 K in August 2023.
- Investors will go into a Murabahah agreement (sale contract) with Selected Retailers for purchasing high-selling FMCG items.
- It will be a “buy-and-sell” contract where investors will first buy products through biniyog.io. Selected Retailers will then buy those items from investors at 0.5% markup on credit and pay the amount within 7 days, and SupplyLine will be the ‘selling agent’. This cycle will continue for 12 weeks.
- biniyog.io will ensure that necessary ownership and risk of asset possession has been taken on behalf of investors, and then sell to Selected Retailers using SupplyLine’s distribution channel
- SupplyLine will deliver products, monitor the retailers and collect repayments from them.
- Investors will share profits with biniyog.io and SupplyLine in the following manner:
- 30.0% shared with SupplyLine
- 70% shared with biniyog.io and their investors
- This is expected to result somewhere between 4.5% – 5.0% ROI in 4 months (approximately 13.5%-15.0% annual ROI)*
*(subject to investment risk)
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.
- Macroeconomic situation putting pressure on standard retails sales: Selected Retailers generate revenue by selling grocery and other daily essentials. Due to the current macroeconomic situation, the retailers may face an unforeseen drop in sales if people reduce their overall spending. This may result in delay in repayment, or less purchase by retailers. If retailers purchase less, investors’ profit will also decrease.
- Mitigation: The retail stores have been selected by a rigorous assessment process and good transaction history. They are expected to sustain even after macroeconomic pressure.
- Possibility of missing repayment deadline: The sales of daily goods is quite volatile. Because the sales vary widely day by day. For example, a retailer might generate sales of BDT 50,000 in one day of a particular time period of the month but they may fail to generate sales of BDT 50,000 for consecutive days at a different time period of the month. This may also reduce investor’s profits.
- Mitigation: Some retailers already have been availing credit through biniyog.io or SupplyLine, and they have good repayment history so far. However, this risk will always remain.
biniyog.io will buy the products on behalf of investors first and secure ownership through SupplyLine, based on orders received from Selected Retailers. The products will then be handed over to Selected Retailers.
Selected Retailers would have the right to reject the products due to quality etc. The risk is expected to be minimal since SupplyLine will ensure the quality of the items.
This is a necessary risk to ensure Shariah compliance of the transaction.
SupplyLine will be in-charge of selling products, monitoring and collecting repayments from the retailers. They have been operating in this process for the past 2 years, and have built a reputation with retailers. Retailers are dependent on them to get regular product delivery and credit facility, so it is less likely that they will default repayments, unless unforeseen macroeconomic disruptions occur.
Selected Retailers will share personal guarantee security cheques.
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 8 lac