15% per annum
7 installments (Starting from the 3rd month)
Wearix is a sportswear brand. It provides high-end t-shirts, shorts and jerseys made of superior cloth designed specifically for athletes.The business needs funds for expanding its market by increasing supply and acquiring new customers.
Investors can expect to get an ROI of 11.25%* over 9 months (15% annualized). *subject to investment risk (details below)
Shop/warehouse address: Islamnagar, adjacent to Jahangirnagar University, Savar, Dhaka.
💡 Is the business Shariah-compliant?
- The business model (selling jerseys, t-shirts, jockers, shorts etc.) 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.
Md Tanvir Siddiqui Saimun is the proprietor of Wearix. He is currently a student at Jahangirnagar University and is also an aspiring professional footballer. This has not stopped him from pursuing a business of his own. His dream is to build a Bangladesh sports brand which will have international exposure by 2030.
He comes from Kaliganj, Satkhira.
- Business owner with good level of networking in the sports arena of Bangladesh.
- Providing a guarantor for ensuring highest assurance.
The investment is for a period of 9 months, from May 2023 to February 2023. Payment to be cleared by the 2nd week of February ’23.
Projected ROI (for the duration of the project): 11.25%
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 about BDT 111.250k within February 2024 in instalments.
- Investors will go into a Murabahah agreement (sale contract).
- It will be a “buy-and-sell” process where investors will first buy products through biniyog.io. Wearix 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 Wearix .
- biniyog.io has proposed a price to Wearix for the products after considering a minimum 11.25% profit on actual cost of product procurement. Wearix has agreed to it.
- Investors can expect to get their returns over 9 months in 7 instalments:
- 10% at the end of August’23
- 10% at the end of September’23
- 10% at the end of October’23
- 15% at the end of November’23
- 15% at the end of December’23
- 15% at the end of January’24
- Final 25% at the end of February’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.
- Manufacturer not delivering as promised: Since Wearix goods are made by third-party agents instead of directly by the garments, the product might disperse in quality from the expectation/standard due to many reasons. The business has faced this issue once previously. This can result in drop in sales that can end up impacting the repaying capacity of the business.
- Wearix’s strategy: Wearix’s plan is to first look at a sample of the product to make sure it is well-made. After quality control has been made sure of, the products will be made. By taking this step, the problem with the third party will be mitigated.
- Failure to execute and carry out impactful marketing plans: The business has a high online presence. A major portion of sales is generated through online for Wearix. Failure to implement impactful marketing strategies will set the business back to generate expected level of sales. Additionally, running ads on Facebook might become difficult according to a recent announcement by httpool Bangladesh Limited
- Wearix’s strategy: The business is already in talks with some star players to become its brand ambassador. The business is also looking to expand into the Universities as a lot of sports events and tournaments are organized in almost every university. The owner of the business uses his personal connections to reach out those organizers who are in charge of arranging the sports events and tournaments.
- 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.
- Wearix’s strategy: Wearix has a lot of satisfied customers, including players from the national cricket team. Customers will buy from them despite the price change because they are happy with the quality of their goods.
- 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.
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 7 months, the markup profit can be 10% (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. 10% in 7 months means 17.1% per annum)
biniyog.io will buy the products on behalf of investors first and secure ownership. The products will then be handed over to Wearix within a very short time frame.
Wearix would have the right to reject the products due to quality etc. The risk is expected to be minimal since Wearix themselves will be choosing the items before biniyog.io buys them.
This is a necessary risk to ensure Shariah compliance of the transaction.
Wearix will share instalment cheques with biniyog.io. A personal guarantee security cheque will also be kept from the business owner. Additionally, there will be a guarantor signing the in the contract.
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 4 lac.