16% per annum
7 installments (Starting from the 3rd month)
Richkid is a Footwear based lifestyle retail e-commerce platform.The business needs funding for purchasing products in bulk and purchasing some custom design products to cater the surplus demand of the market.
Investors can expect to get an ROI of 12%* over 9 months (16% annualized). *subject to investment risk (details below)
Written by Richkid – verified by biniyog.io ✅
Richkid is a Footwear based lifestyle e-commerce platform. We started our journey in the middle of 2020. Within a considerably short span of time, we have served a very significant number of customers and it’s increasing every day. We are working to become the leading destination for customers looking for stylish, comfortable, and functional products that enhance their lifestyle.
Our brand name, Richkid, symbolizes our vision to provide our customers with a luxurious experience without the hefty price tag. We believe that everyone deserves to feel like a rich kid, and that’s why we offer affordable prices without compromising on quality.
To meet growing demand and a unique style statement Currently, we launched our very own product line. We need funds to expand the product line and maintain a higher stock inventory of products for the coming peak seasons (such as Eid-ul-adha, winter seasons, etc.)
H:38, R:1/A, Sector 15 (C), Diyabari, Uttara, Dhaka.
💡 Is the business Shariah-compliant?
- The business model (selling different types of shoes) 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.
Richkid is a concern of “BrandingFeed IT” owned by MD Abdul Malek (Arif), BSC Civil Engineer, Far East International University.
He has been involved in the world of online business since 2014. The journey of his organization started with the aim of building a destination for customers looking for stylish, comfortable, and functional products that enhance their lifestyles. He is the Chief Executive Officer (CEO) of this organization.
- Promising revenue growth.
- Strong online presence.
- Good sourcing channels.
The investment is for a period of 9 months, expected from June 2023 to March 2024.
Projected Return on Investment (ROI): 12%
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 112k by March ‘24.
- Investors will go into a Murabaha agreement (sale contract) with Richkid for purchasing sports and leather shoes (in bulk).
- It will be a “buy-and-sell” process where investors will first buy products through biniyog.io. Richkid will then buy those items from investors on credit and pay the amount over 9 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 Richkid.
- biniyog.io has proposed a price to Richkid for the products after considering a minimum 12% profit on actual cost of product procurement. Richkid has agreed to it.
- Investors can expect to get their returns over 9 months in 7 instalments:
- 15% in September’23
- 15% in October’23
- 10% in November’23
- 10% in December’23
- 10% in January 24
- 20% in February’24
- Final 20% in March’24
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.
- Failure of manufacturers to deliver required quantity of products on time: The business sources the products from different manufacturers directly. Sometimes, the manufacturers tend to deliver less products than the business demand. This happens due to sudden unavailability or surged demand of the products.
- Richkid’s strategy: The business has a good rapport with the manufacturers. Therefore, the business is able to sort out possible issues that might occur from the manufacturer’s end. Additionally, the business purchases from different sources to avoid falling into supply crisis situations. The business also has enough capacity to store a bulk amount of shoes at once.
- Full dependency on online marketing for boosting sales: Similar to all other completely online-based businesses, Richkid also has to rely heavily on Facebook marketing. This is a risk since Facebook policies or any cyber-security issue might end up interrupting the overall online engagement of the business.
- Richkid’s strategy: The business owner is aware of this risk and has kept some security measures in place to minimize it such as the business does not take any order via their FB page. They take all orders through their website.
- Inflation: An increase in the price of raw materials would have an effect on selling prices to local buyers, possibly resulting in a decrease in sales volume.
- Richkid’s strategy: The business is planning to make some bulk purchases with the funding. This step is expected to mitigate the price hike issue to a tolerable level.
- 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, if not hugely impacted by macroeconomic issues.
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 10 months, the markup profit can be 15% (instead of 16%). 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. 15% in 10 months means 18% per annum)
biniyog.io will buy the products on behalf of investors first and secure ownership. The products will then be handed over to Richkid within a very short time frame.
Richkid would have the right to reject the products due to quality etc. The risk is expected to be minimal since Richkid themselves will be choosing the items before biniyog.io buys them.
This is a necessary risk to ensure Shariah compliance of the transaction.
Richkid will share instalment cheques with biniyog.io. Additionally, a personal guarantee security cheque will be kept from the business owner. Additionally, a guarantor will be provided by the business owner as well.
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 12 lac with a stretch goal of BDT 15 lac.