15% per annum
3 installments (Starting from the 5th month)
Shonkhochil is looking to raise funds for buying decoration items, fabrics and sewing machines. Their nokshi (নকশি) products include unique items consisting of handloom cotton embroidery work, two-piece cotton embroidery work etc. Your financing will help them decorate their newly opened shop and factory that will increase their manufacturing capacity and increase the flow of revenue.
This is a halal “buy-and-sell” (Murabaha) campaign, and investors will be able to enjoy an ROI of about 16.25% for an investment period of 13 months.
The business has successfully repaid the fund raised through its first campaign on time.
*subject to investment risk (details below)
Shonkhochil started operations in December 2020 with traditional Bangladeshi crafts. By training underprivileged women in remote areas, they have been working to expand the domestic and foreign markets of handmade products through beautiful designs. As a result, they have created employment opportunities for many women.
Shonkhochil ‘s nokshi (নকশি) products include unique items consisting of handloom cotton embroidery work, two-piece cotton embroidery work etc. that they sell both online and offline. Though their primary point of sale is still offline, they have significant online presence through their Facebook page and Daraz store.
Shonkhochil recently became one of three winners among 2500+ applicants at Bangladesh Youth Enterprise Competition (BYEC) 1.0 which was organized by B’Yeah – a not-for-profit that is part of UK-based YBI. They have also been nominated for Unilever Bangladesh’s Rin Namkora Nari 2022.
They have been operating from a raw shed which restricts them from using expensive machines due to security reasons. Currently Shonkhochil ‘s funding requirement is for the construction of a shed which would enable them to manufacture jute-based and other new products as well as make a small showroom.
Explore: Facebook Page | Daraz Store
Zarrin Tasnim is an educated entrepreneur who completed Alim in 2018 from Tamirul Millat Kamil Madrasa, Tongi. She is currently in her 2nd year of the Fazil program at the same institution.
Zarrin has previously done entrepreneurship development training from BSCIC (Bangladesh Small and Cottage Industries Corporation). At present, she is fully engaged with Shonkhochil Kutir.
Zarrin wants to expand Shonkhochil’s activities in the entire North Bengal region to create employment opportunities for underprivileged women and to establish Shonkhochil as a brand both nationally and internationally.
- Educated founder with passion and creativity
- Expanding business through unique products and serving renowned channels
- Creating employment opportunities for underprivileged women
- Received mentorship from business experts
The investment is for a period of 13 months, from April 2023 to May 2024.
Projected ROI (for the duration of the project): 16.25%
Projected ROI (annualized): 15%
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 116.25k by May 2024.
- Investors will go into a Murabaha agreement (sale contract) with Shonkhochil for shop and factory decoration items, sewing machines and fabrics products.
- It will be a “buy-and-sell” process where investors will first buy products through biniyog.io. Shonkhochil will then buy those items from investors on credit and pay the amount after 13 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 Shonkhochil.
- biniyog.io has proposed a price to Shonkhochil for the products after considering 16.25% profit on actual cost of product procurement. Shonkhochil has agreed to it.
- Investors can expect to get their returns in 13 months in 3 installments:
- 10.8% in Sep’23
- 10.8% in Jan’24
- 78.4% in May’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 an advanced buy-and-sell (Bai’ Murabaha) agreement.
biniyog.io‘s Shariah advisors have approved the basis and application of this Bai’ Murabaha contract.
- Chance of high inflation hurting the revenue level: Price of almost everything has gone up due to high inflation. Businesses like Shonkhochil is not beyond that.
- Shonkhochil’s strategy: This is global phenomenon. No business can get past this. However, The business offers a competitive rates to the existing brands and gets regular orders through multiple channels due to its good reputation and quality work. This can help the business to tackle the inflationary pressure to some extent.
- Slight dependency on credit sales: Shonkhochil has a diversified customer base. This includes both retail and wholesale customers. The business normally does not make credit sales. But for some very regular and renowned customers, exceptions are made often times. If any big order amount gets stuck in this loop of credit sales, the business might fail to meet its repayment schedules on time.
- Shonkhochil’s strategy: The business does not allow credit sales to non-regular buyers. Only some selective buyers get the credit purchase facility. Thus, the chance of getting significantly delayed payments is quite low.
- Chance of expansion plan going wrong: The business has recently opened a shop at Nilphamari Shodor as part of their expansion plan. There is a chance of not getting expected level of sales from the newly opened shop. Such situation might result in significantly delayed repayments.
- Shonkhochil’s strategy: The business gets orders from a number of channels including Facebook page, personal messages and Daraz store which indicates that they are not dependent on a specific type of customer/ sales channel. Sales volume has been pretty consistent throughout with occasional spikes so this is the right time for them to expand in small steps.
- 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 kind of business.
- Credibility: biniyog.io has received good feedback about the business from B’Yeah, which gives them good reference score. Shonkhochil has received BDT 3 lac grant from B’Yeah which they have utilized to construct part of the shed.
biniyog.io will buy the products on behalf of investors first and secure ownership. The products will then be handed over to Shonkhochil within a very short time frame.
Shonkhochil would have the right to reject the product due to quality etc. The risk is expected to be minimal since Shonkhochil 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.
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 14% (instead of 16.25%). 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. 14% in 10 months means 18.2% in 13 months)
Shonkhochil will share an instalment cheque with biniyog.io. A personal guarantee security cheque will also be kept from the business owner.
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 7 lac with a stretch goal of 8 lac.
Primary target achieved, updated with stretched targetThe funding campaign has raised primary target of BDT 7 lac. Targeting to raise a stretch goal of BDT 8 lac.