Duration

11 months

Min. Investment

৳ 10,000

Projected ROI

17% annualized

Risk Grade

B+

Repayment

3 instalments (every month from the 9th month)

Overview

Safe Food is an agri business raising funds for the third time. They will utilize the funds to purchase fish feed and hatchlings for their fish projects. Investors can expect to get an ROI of 15.58%* over 11 months. 

*subject to investment risk (details below)

Mymensingh, Bangladesh

Safe Food [3] (11 months)

৳ 620,000 Raised
৳ 0 Being Processed
0 Days Left
Raised:
112.73%
Goal: ৳ 550,000
The campaign is successful.
By Saif
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The Business

Accordion Content

APYZ Safe Foods Agro Ltd. is an agriculture based private company which started from 2016. Safe Food is a social movement against adulteration and harmful effects of different food items that we consume daily and the directors directly supervise the quality of the products delivered.

The directors of the company are social entrepreneurs, consisting of graduates from Bangladesh Agricultural University (BAU) Mymensingh and Bangladesh University of Engineering and Technology (BUET).

Their business is located in Mymensingh, and the products are distributed in Dhaka, Mymensingh, Chattogram and Sylhet.

Safe Food has an MoU with a renowned super shop to deliver Omega 3 eggs and Regular eggs twice a week. However, they will need an investment to manage regular delivery in the initial months, as payments are usually made every 15-20 days by the super shop.

Safe Food is raising fund for the third time through biniyog.io. They have previously entered into a profit-sharing contract that has been successfully completed. They have an ongoing repayment of Safe Food [2] for which they have paid every repayment on time so far.

Explore:  Facebook Page
Head Office: House-33, Road-5, Block-B, Banasree, Dhaka
Mymensingh Office: Safe Agri Tech Valley, Unairpar, Mymensingh

FAQ:

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.

How is ‘fixed returns’ halal?
This is a sale contract (Murabaha) approved by our Shariah advisors, where investors will purchase products first (biniyog.io will facilitate the purchase), and then sell to Safe Foods at a mark-up. This mark-up amount against sold product is the fixed return / profit for investors.
Details under “Contract conditions” and “Possession of Assets” part below.

Chairman & CEO: Muhammad Ahsan Habib

Mr Ahsan Habib has been passionate about entrepreneurship from the early stage of his life, and that inspired him to be a social entrepreneur since 2009. He completed his B.Sc in Animal Husbandry and M.Sc in Animal Breeding & Genetics from Bangladesh Agricultural University, Mymensingh.

He received a social entrepreneur award at the English Olympiad in 2018. Mr. Ahsan wants sustainable development in the agricultural sector in Bangladesh and he has devoted himself to the development of livestock industry & agriculture. He introduces himself as a social entrepreneur because of his strong beliefs that he and his team can contribute for the betterment of the society with innovative ideas and latest technology

  • Diversified business with poultry, eggs, fish, retail shop and trading
  • Robust experience and education related to the business
  • Good grip over the overall supply-chain.
  • Repaid every instalment on or before deadline

The Contract

Accordion Content

The investment is for a period of 11 months, from July 2023 to June 2024 (Exact date will be finalized after financing is complete).

Projected ROI: 15.58%

Projected ROI (annualized): 17% 

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 115.58k by June 2024.

  • Investors will go into a Murabahah agreement (sale contract) with Safe Food for purchasing hatchlings and fish feed.
  • It will be a “buy-and-sell” process where investors will first buy the products through biniyog.io. Safe Food will then buy those items from investors on credit and pay the amount over 11 months in 3 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 Safe Food.
  • biniyog.io has proposed a price to Safe Food for the products after considering a minimum 15.58% profit on actual cost of product procurement. Safe Food has agreed to it.
  • Investors can expect to get their returns over 11 months in 3 instalments:
    • 10% by end of April’24
    • 20 by end of May’24
    • 70% by end of June’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
  • Disease Outbreaks: Fish farm disease outbreaks can have a significant negative impact on the production and profitability of big-fish businesses. In confined waters, infectious diseases can spread quickly, increasing mortality rates, decreasing output, and requiring expensive disease management methods. This can result in large financial losses.
    • Safe Food’s strategy: The business will only work with “deshi fish” such as tilapia, pangas and magur. This will reduce the chance of disease outbreaks significantly as the immune system of such fishes are very high. 
  • Operational challenges: Operational challenges include managing complicated procedures such as maintaining water quality, supplying enough feed, and keeping an eye on fish health. Production delays, higher expenses, and significant revenue losses can result from any disruption in these processes, such as equipment failure, power outages, or supply chain problems.
    • Safe Food’s strategy: The business has dedicated employees for the fish projects. They are responsible for taking care of the operational issues (mentioned above). This helps the business to avoid any major problems related to the operational area.
  • Price volatility: Market demand, worldwide supply, and competition are a few examples of the reasons that might cause price fluctuation for big-fish products. Prices that fluctuate can affect a company’s profitability, particularly if manufacturing costs stay the same or go up.
    • Safe Food’s strategy: The business will be harvesting and selling the fish after 10-11 months. But the campaign has been set for 11 months. The extra 1 month has been kept as a safety margin to sell the fish when the market is stable enough so that the business can secure the expected level of profit margin. 
  • 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 will buy the products on behalf of investors first and secure ownership. The products will then be handed over to Safe Food within a short time frame.

Safe Food would have the right to reject the products due to quality etc. The risk is expected to be minimal since Safe Food 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 had several discussions with Safe Food before fixing the repayment structure, and this is the best format in which they should be able to repay every instalment on time.

A security cheque will be kept from Safe Food as security. A guarantor will also be present in the contract who will take care of the repayment in case any unwanted situation occurs.

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.

  • 12-07-2023

    This campaign is now live on biniyog.io!

    The funding campaign has started. The target is BDT 5.5 lac