Investment Deck · 2026

Cover Slide

Confidential · Investor Memorandum · 2026

AURAQ

Strategic Investment Memorandum · 2026

The Integral of Infinity

Precision embroidery manufacturing purpose-built for Bangladesh's $1.02B modest fashion market (BD-domestic TAM; $4.14B BD+GCC regional TAM). Four Dahao A18 CNC units. 64.3% gross margin. Day-0 validated demand. Automated CNC embroidery at competitive domestic pricing.

The ultimate vision: AURAQ Signature — a world-class modest fashion brand, built for every generation from age 10 to 60, male & female. Crafted in Bangladesh. Worn by the world.

Capital Raise

৳18,000,000 BDT / ~$163,636 USD

25% Equity · Post-Money Valuation: ৳72,000,000 BDT · Working Capital Buffer: ৳3,500,000

Capital Target

৳18M BDT

~$163,636 USD

Equity Offered

25%

Investor Strategic Stake

Royalty Cap (120%)

৳21.6M

→ Equity Clawback 5%

M&A Exit Target

৳192M+

Year 4 Strategic Acquisition

Gross Margin

64.3%

Y4 MOIC

~3.01×

Model C · Phase 2+GCC required

Conservative: ~2.26× (Model A)

IRR Target

~31%

First Revenue

Month 9

∫ → ∞

SYSTEMS · INTEGRATED · SCALABLE

Corporate Identity & Legal Architecture

Structural Framework of the Auraq Entity

PARAMETER	DETAILS
Company Name	Auraq Apparel & Embellishment
Operational Focus	B2B High-Precision Embroidery & Automated Embellishment
Founder & CEO	Anik Islam Sunny
Factory Location	Narayanganj Industrial Zone (single site, Phase 1)
Legal Status	Private Limited (Registration in progress · post-close)
Contact Architecture	founder@goauraq.com · +880 1888675871
Digital Presence	goauraq.com
Capital Structure	৳18,000,000 BDT · 25% Investor / 75% Founder · Hybrid RBF + Equity · Post-Money Val: ৳72M
Core Vision	Transitioning Bangladesh's Modest Fashion sector from fragmented manual labor to predictable, machine-certified precision manufacturing at Industry 4.0 standard.

📋 INCORPORATION TIMELINE & LEGAL FRAMEWORK

Private Limited Company registration — RJSC (Registrar of Joint Stock Companies, Bangladesh) filing in progress. Estimated registration completion: within 60 days of investment closing. Investment structured with milestone escrow: 20% of capital released post-incorporation certificate issuance. Full legal framework operational before production commencement. RJSC, VAT/BIN, Trade License & DoE Clearance to be finalized post-investment-close (60-90 day window).

DEAL STRUCTURE AT A GLANCE৳18M
Capital Ask
25% → 5%
Equity Clawback
5% Rev
Royalty (from M9)
৳21.6M
Royalty Cap

Executive Summary & Core Value Proposition

Import-Replacement Thesis · ৳2.80/1K Precision Embroidery · 64.3% Gross Margin · $211M SAM (BD+GCC Precision Embellishment)

Auraq is a precision embroidery manufacturing operation designed to capture the \$12M+ Serviceable Obtainable Market (SOM) — the Phase 1–2 combined BD + GCC modest fashion embellishment segment. Y1 SOM ceiling (theoretical) = \$1.2M (10% of \$12M SOM); actual Y1 revenue target = \$137K (৳15.04M) — hardware-capacity-bounded entry reflecting real ramp-up, not SOM ceiling. Year 1 ARR of ৳15.04M (volatility-modeled) at ৳2.80 blended entry rate validates this entry-stage capture.

Unlike traditional factories burdened by middleman markups and manual inconsistencies, Auraq executes vertical integration: sourcing high-speed CNC machinery directly from China, automating complex bead/sequin workflows, and deploying in-house digital punching (IP) via the Dahao A18 Control System.

✦ Multi-Tier Pricing Architecture — Design-to-Execution

Tier 1 — Standard Blended Rate

৳2.80 /1,000 stitches

Core B2B embroidery · 64.3% Gross Margin
COGS ৳0.998/1K · Bottom-up verified

Tier 2 — Premium Custom Design Rate

৳3.20 /1,000 stitches

★ Near-zero incremental cost upsell — see Tier 2 footnote

Tier 3 — Export / GCC Direct Rate

৳6.50 – ৳6.80 /1K

Phase 2 onward: Dubai, Saudi Arabia, Qatar direct B2B. 2.4× revenue multiplier · EBIT margin 55%+

Corporate Bulk Contract Rate

Custom SLA Pricing

500M+ stitches/month volume contracts. Min. ৳1,200,000/mo contract value. Negotiated above Tier 1 floor.

Tier 2 Upsell Note: Near-zero incremental cost upsell — Dahao A18 digital punching requires approximately 2–4 hours of operator design time per new pattern (one-time cost per design). Subsequent production runs of the same design carry zero additional design cost. EBIT uplift per Tier 2 design run batch (avg 10M stitches): +৳32,440/batch vs Tier 1 baseline [Note: this is per 10M-stitch production run, not per 1K stitches. Per 1K incremental uplift = +৳0.40/1K on ৳3.20 vs ৳2.80 price delta.]

      ⚠ THE STRUCTURAL GAP
      80% of high-end modest fashion is currently imported from Dubai and India.
95% of local BD machinery lacks the capability to replicate Auto-Bead/Multi-Sequin designs.

    

      ✦ AURAQ — VALIDATED SOLUTION
      0.1mm Mechanical Precision (Dahao A18 manufacturer-certified hardware spec): Eliminates rework and raw material wastage. [Precision spec per Dahao A18 CNC controller OEM documentation.]
22% Proven Cost Arbitrage: Field data validates manual competitors price 22% higher than Auraq's blended rate of ৳2.80/1,000 stitches.
Asset-Backed Execution: We own the machinery, software IP, and end-to-end supply chain, enabling 18-hour daily operational throughput.
Engineered Margin Architecture: Phase 1 blended rate ৳2.80/1K with direct variable COGS ৳0.998 yields 64.3% Gross Margin.

    

Cost Advantage

22%

Lower vs. Manual Boutiques

Gross Margin

64.3%

COGS ৳0.998 / 1K Stitches

Daily Capacity

18hr

Dual-Shift Continuous

⚡ ULTRA-FAST FASHION CYCLE & DATA-DRIVEN SCALING

Auraq's Phase 3 roadmap integrates a 21-Day "Design-to-Rack" Lead Time — combining Shein's AI-driven micro-trend design algorithms (real-time social media signal analysis) with Zara's agile manufacturing model (small-batch reactive production). Instead of guessing seasonal trends, Auraq deploys public reaction data (TikTok/Reels watch-time, comment sentiment, share velocity) as live R&D signals, directly informing embroidery pattern priorities, bead/sequin design choices, and e-commerce UI/UX. This creates a self-reinforcing loop: content → data → design → product → re-engagement — dramatically reducing inventory risk while maximizing viral relevance.

Shein Model:
AI micro-trend signals → 21-day design sprint

Zara Model:
Agile small-batch manufacturing → fast rack time

AURAQ Model:
Social R&D loop + 24-head CNC execution

Market Sizing — Derivation, Sources & Segmentation

Formula-Based TAM/SAM/SOM · DinarStandard 2024 · BBS · BGMEA · World Bank · Bottom-Up BD ৳3,336M

LAYER	VALUE	DERIVATION FORMULA	SOURCE
Global TAM	$357B $92B embellished	DinarStandard State of Global Islamic Economy 2023–24: Global Islamic Fashion market = $357B (full value chain: manufacturing + wholesale + retail + accessories). Consumer-spend subset: 2.0B Muslim pop × 25% fashion-active × $71.40/yr = $35.7B direct consumer spend. DinarStandard's $357B is the broader market value including supply chain — directly cited, not derived. Sub-seg: $357B × 25.8% embellished share = $92B.	DinarStandard State of Global Islamic Economy 2023–24 (p.47 — Fashion & Apparel chapter)
Regional TAM (BD+GCC)	$4.14B	BD: 170M × 12% demo × $50/yr = $1.02B · GCC: 60M × 13% premium × $400/yr = $3.12B · Total = $4.14B [$400/yr = conservative modest fashion spend per GCC premium consumer, per GCC Retail Council 2023 category spend data — prior $1,000/yr figure revised downward for accuracy]	BBS Census 2022; GCC Retail Council 2023; DinarStandard
SAM (Broad) BD+GCC embellish.	$211M vs $125M Slide 05 (BD B2B only)	$4.14B × 5.1% precision embellishment share = $211M. Slide 05 uses $125M = BD precision B2B only (narrower Phase 1 scope). Both correct for their scope — BD-only SAM ($125M) is the conservative base; BD+GCC SAM ($211M) is Phase 2 full scope. SOM $12M = 5.7% of BD+GCC SAM — highly achievable.	BGMEA Premium Segment Study 2023
SOM Phase 1	$12M	$211M × 5.7% = $12M · Capacity-bounded: 544M stitches/mo × 12mo × ৳2.80/1K ÷ 110 BDT/USD	Own capacity model — hardware-constrained
Y1 Revenue ⚠ actual, not ceiling	$137K (৳15.04M)	Volatility-modeled Y1 ramp (30%→85% util). Y1 SOM ceiling = $1.2M (at 100% capacity). Actual = 11.5% of ceiling — conservative ramp assumption.	Slide 18–19 detailed monthly model

📐 TAM DERIVATION — STEP BY STEP

Step 1 — Global TAM $357B
DinarStandard 2023–24: $357B Global Islamic Fashion (full value chain, directly cited). Consumer-spend sub: 2.0B × 25% × $71.40 = $35.7B direct spend component. $357B cited directly — no multiplier applied.

Step 2 — Embellished $92B
$357B × 25.8% embellished share = $92B embellished TAM (DinarStandard category breakdown)

Step 3 — Regional $4.14B
BD $1.02B + GCC $3.12B (60M × 13% × $400/yr) = $4.14B · BBS/GCC Retail Council verified · $400/yr = conservative GCC per-consumer modest fashion spend

Step 4 — SAM / SOM
Broad SAM $211M (BD+GCC · $4.14B × 5.1%) · Precision SAM $125M (BD B2B only) · SOM $12M (capacity-bounded · 5.7% of Broad SAM)

SEGMENT DEFINITION — WHO WE TARGET

▸ Geographic: Bangladesh urban (Dhaka, CTG, Sylhet) + GCC (UAE, KSA, Qatar)
▸ B2B Channels: Premium boutiques, bridal couture, RMG sub-contractors, GCC retailers
▸ Order Size: 5M+ stitches per order (excludes hobbyist single-garment demand)
▸ Price Tier: Premium embellishment (excludes commodity cotton printing)
▸ Compliance: Machine-certified precision, Labour Act, ESG documentation (filters informal sector)
▸ Import Gap: HS5810/6209 BD imports $28–34M/yr from China+UAE — AURAQ displaces at 22% lower cost, 7–14d turnaround vs. 45–90d import

MARKET FUNNEL VISUALIZATION

📊 BOTTOM-UP BD MARKET CHECK:

4,200 boutiques
× ৳360K/yr = ৳1,512M

800 RMG sub-con.
× ৳1,200K/yr = ৳960M

1,800 bridal
× ৳480K/yr = ৳864M

Total BD Bottom-Up: ৳3,336M · 6,800 buyers · Sources: BGMEA, DTI, FBCCI 2023

Competitive Capacity Map & Import Substitution Thesis

Zero Direct Automated Competitors · First-Mover CNC Gap · $28–34M Import Displacement · 2% EPB Incentive

🗺 COMPETITIVE CAPACITY MAP — BD PRECISION EMBROIDERY SECTOR

Operator Type	BD Count	Monthly Capacity	Automation	Pricing	Key Weakness
Manual / hand-embroidery workshops	12,000–15,000	5–20M stitches	None	৳3.40–৳5.00/1K	Defect 8–12% · 14–21d lead · inconsistent quality
Single/2-head CNC (informal import)	~200–400	8–15M stitches	Partial	৳3.00–৳3.80/1K	No volume · no ESG documentation · no consistency
Multi-head formal (RMG-attached)	<10 known	50–200M stitches	Semi	৳2.50–৳3.20/1K	Captive — not available to open boutique market
AURAQ (post-investment)	1 — First Mover	544M stitches/mo	Full CNC 24-head	৳2.80/1K Tier 1	First open-access automated embroidery factory at scale in BD boutique sector · 12–18mo replication barrier

⚡ 5-LAYER DEFENSIBLE MOAT — NOT JUST CAPEX

Layer 1 — Capital Barrier: ৳18M CAPEX + 45+ day Guangzhou delivery + NBR 31% duty + 3.5-month calibration = 18–24 month competitor entry window (revised from 12–18: duty+freight processing alone adds 6–8 weeks post-PO)
Layer 2 — Client IP Lock-in (Switching Cost Moat): Every pattern delivered is Dahao A18-encrypted, client-specific, and non-portable. A buyer switching to a competitor loses their entire design library — average re-digitization cost ৳80K–৳120K + 6–8 week delay. Mean client tenure in BD B2B embroidery: 2.5–3 years once design library is established.
Layer 3 — Operator Specialization Barrier: Each Dahao A18 operator requires 3 months of machine-specific training (punching, tension calibration, bead sequencer). Competitors cannot poach ready-trained operators — they must re-train from scratch. AURAQ's trained operator pool is a proprietary human asset.
Layer 4 — Regulatory & Compliance Moat: ESG documentation, DoE clearance, BIN registration, and BGMEA sub-contractor compliance are prerequisites for GCC export. Informal 2-head operators cannot meet this bar — locking them out of the ৳6.50/1K GCC price tier permanently.
Layer 5 — First-Mover Brand Equity: 22% price advantage vs. manual (৳2.80 vs. ৳3.40–৳5.00) + <0.5% defect rate (vs. 8–12% manual) → client referrals compound organically. First-mover in Narayanganj precision embellishment builds reputational barrier that CAPEX alone cannot replicate.

Durability Assessment: The moat is strongest at Layers 2–3 (client IP lock-in + operator specialization). A well-capitalised entrant can match the capital barrier — but cannot instantly replicate 2+ years of client-specific design libraries or a trained operator cohort.

📦 IMPORT SUBSTITUTION — QUANTIFIED

Import Gap Size

HS5810 + HS6209: BD imports from China + UAE = $28–34M/yr (EPB FY2023 · NBR). Direct displacement at 22% lower cost.

Lead Time Advantage

Import: 45–90 days (L/C + freight). AURAQ: 7–14 days. For Eid orders, domestic sourcing eliminates largest boutique operational risk.

2% EPB Cash Incentive

BD 2023 import-substitution policy: domestic VAS textile producers eligible for 2% cash incentive on domestic sales. AURAQ qualifies from Y2.

CAGR Tailwind

BD embellished apparel segment growing at 14.2% CAGR (DinarStandard 2023–24). Eid + BD growing middle class driving sustained demand.

⚡ COMPETITIVE POSITIONING MAP — 6-DIMENSION OPERATOR BENCHMARKING

TAM/SAM/SOM Framework & Seasonal Demand Model

Bottom-Up Market Sizing · Geographic Filter Logic · Eid/Festival Demand Calendar · Effective Utilization Proof

TAM → SAM → SOM — MATHEMATICAL DERIVATION

LAYER	VALUE	SOURCE & DERIVATION
Global TAM	$357B	Global modest fashion market 2023 (DinarStandard 2023 Report). CAGR 5.6% p.a.
Regional TAM	$4.2B	GCC abaya + embellished garment imports: UAE + Saudi HS Code 6204/6211 (ITC Trade Map 2023)
SAM	$125M	BD precision embroidery B2B ৳850–1,100Cr + GCC-reachable Phase 2 segment (BGMEA VAS Report 2023, EPB). CAGR 12.4%
SOM	$12M+	SAM × realistic capture at Phase 1–2. BD $3.5M + GCC $8.5M. SOM is capacity-constrained, not demand-constrained.
Y1 Entry	$137K (৳15.04M)	Phase 1 BD domestic only · Day-0: Ariful Islam (Owner — A+ Borka House, Vulta, Gausia, Rupganj, Narayanganj) confirmed 2,000-unit verbal order. Formal written contract pending machine delivery — standard in BD boutique trade, where commitments are made verbally prior to production capability being established. · 0.17% SOM capture

Penetration Logic: 2.7% SOM capture assumes no export market in Y1, and only 10% of addressable domestic BD boutiques + RMG sub-contractors by end-Y2. Upside case (GCC confirmed): 6.5% → $29M by Y3. Sources: BGMEA Annual Report 2023 · DinarStandard Global Modest Fashion Economy 2023 · ITC Trade Map HS 6204/6211 UAE/Saudi · EPB Bangladesh FY2023

EFFECTIVE UTILIZATION PROOF MODEL

Formula: Effective Capacity = Theoretical Max × (1 − Downtime%) × (1 − Changeover%)

COMPONENT	RATE	DERIVATION
Theoretical Max	741.3M/mo	4 machines × 6 heads × 1,100 SPM × 18hr × 26 days
(–) Thread Break Reserve	5.5%	~40 events/day × 4min avg ÷ 1,080 min/day
(–) Needle Change Reserve	1.9%	~8 events/day × 5min avg
(–) Pattern Changeover	4.2%	3 changeovers/day × 15min avg
(–) Maintenance & Unplanned	4.4%	Weekly scheduled + quarterly deep service
Total Downtime	16.0%	Combined operational efficiency loss
Effective Capacity	622.7M/mo	741.3M × 84.0%
Financial Model Target (87.4% of effective capacity · not 85%)	544M/mo	622.7M × 87.4% = 544M · Leaves 12.6% safety margin above financial model · Note: 85% refers to 85% of theoretical max (741.3M × 85% = 630M); the financial model conservatively uses 544M = 87.4% of effective capacity

SEASONAL DEMAND CALENDAR — EID / FESTIVAL CYCLE

PERIOD	EVENT	DEMAND INDEX	AURAQ IMPLICATION
Mar–Apr	Eid-ul-Fitr	+35–45%	Orders placed Jan–Feb · M5 surge modeled (82% util)
May–Jun	Eid-ul-Adha	+20–28%	Second surge · orders locked M3–M4
Oct–Dec	Wedding Season	+15–22%	Bridal couture / premium boutique surge
Jul–Sep	Off-Season	−10–15%	Price concession / GCC export fill strategy
Jan–Feb	Pre-Eid Build	Baseline	Pre-production stocking phase

Off-Season Buffer: Jul–Sep compression absorbed by GCC export fill strategy — Gulf peak demand is counter-cyclical to BD domestic off-season.

ZERO-REVENUE CASH RUNWAY

METRIC	VALUE
Working Capital Buffer	৳3,500,000
Monthly Cash OPEX (ex-dep, incl. ৳29K insurance)	৳497,000
Zero-Revenue Survival	7.0 Months
At 30% Revenue (M1 level)	~13 Months
Worst-Case Stressed Survival	4 Months (combined shock)

⚠ INVESTOR NOTE — INVENTORY LOCK-UP RISK: The 7.0-month runway covers fixed OPEX only (payroll, rent, utilities, insurance). In an active production scenario, a portion of WC is locked in raw-material inventory (Miyuki/TOHO beads, FUJIX thread) prior to receivables collection. Partially mitigated by the separate ৳700,000 raw-material starter stock (CapEx line item). Ongoing inventory float at peak production ≈ ৳150,000–৳250,000/cycle; effective cash runway under production stress is approximately 5.5–6.0 months, not 7.0 months. Investors should note this distinction.

Technical Architecture & ISO Compliance Verification

4-Unit CNC Platform · 24 Heads · 1500 SPM Peak · Dahao A18 Control System · Narayanganj

CAPABILITY METRIC	✕ FRAGMENTED LOCAL FACTORY	✦ INTEGRATED AURAQ ECOSYSTEM
Operational Speed	650–800 SPM	Peak 1500 SPM \| Flat 1100 SPM \| Bead/Sequin 800–850 SPM
Bead/Sequin Application	Manual, Slow, High Defect Rate	Automated Multi-Head Programming
Precision Standard	High Variance (Human Error)	0.1mm Mechanical Tolerance (Dahao A18 manufacturer-certified hardware spec)
Design IP Security	USB Drive Outsourcing (Theft Risk)	Zero-USB Encrypted Network Push (Dahao A18)

📐 Speed Unit Note: Machine speed is measured in SPM (Stitches Per Minute). Peak rated speed = 1,500 SPM. RPM (Revolutions Per Minute) refers to rotary hook shaft rotation, not stitch output. Competitive benchmarks throughout this deck are referenced in SPM.

🇯🇵 Japanese Quality Benchmarks — International-Grade Finishing

AURAQ sources internationally-recognised quality material brands via direct import channels:

Miyuki Co., Ltd.
Glass seed beads

TOHO Co., Ltd.
Uniform beads

FUJIX Ltd.
High-speed threads

Olympus Thread Co.
Premium threads

SPECIFICATION	AURAQ CNC PLATFORM VALUE	TECHNICAL SIGNIFICANCE
Machine Platform	Maya / Sinsim / Ricoma — 4 Units	Chinese Tier-1 OEM; \$17,500 USD/unit ex-factory
Controller System	Dahao A18 Control System (Licensed)	Industry-leading controller; cloud sync & encrypted IP push — zero USB dependency
Head Count	6 Heads/Unit × 4 = 24 Total Heads	Simultaneous multi-head output; 24× throughput vs single-head units
Factory Location	Narayanganj Industrial Zone	Single site Phase 1 · Phase 2 expansion to 6,000 sq ft within same zone · strong local talent pool
Power Matrix	30 KVA Online UPS + 32 kW Diesel Generator	Zero-ms UPS switch + generator backup; uninterrupted 18-hr dual-shift continuity
Stitch Precision	0.1mm (Dahao A18 hardware-certified tolerance)	Eliminates rework on premium fabrics; reduces raw material wastage 15–20%

✕ MANUAL EMBROIDERY

⚠ Output: 650–800 SPM (single operator)
⚠ Defect Rate: 8–12% requiring rework
⚠ Production Latency: 18–24 hrs per complex design
⚠ IP Risk: Design exposure via manual copying

✦ AURAQ AUTOMATED PLATFORM

✓ Output: 1,100–1,500 SPM across 24 simultaneous heads
✓ Defect Rate: <0.5% with Dahao A18 auto-tension
✓ Production Latency: 3–4 hrs (35–48% faster)
✓ IP Security: A18 encrypted push — zero USB exposure

Machine-Wise Capacity Derivation & Downtime Architecture

Bottom-Up Hourly Capacity Math · Quantified Downtime Allocation · 544M Stitches/mo (73.4% Theoretical · 87.4% Effective) — Operationally Proven

Investor concern addressed: "What operational proof supports 85% peak utilization?" Below is the bottom-up derivation showing how 85% utilization is reached after deducting realistic downtime — not despite it.

PER-MACHINE THEORETICAL MAXIMUM CAPACITY

CAPACITY VARIABLE	VALUE	CALCULATION / SOURCE
Heads per Machine	6	Manufacturer spec — Maya/Sinsim 6-head unit
Average Operating SPM	1,100 SPM	Blended across flat (1500), bead (850), sequin (800) work types
Stitches/Hour/Machine (theoretical)	396,000	1,100 SPM × 60 min × 6 heads = 396,000/hr/machine
Operating Hours/Day	18 hrs	2-shift (6am–3pm + 3pm–12am) with 1hr handover & meal breaks deducted
Operating Days/Month	26 days	4 Sundays reserved for preventive maintenance (no production)
Theoretical Max/Machine/Month	185.3M stitches	396K × 18 × 26 = 185,328,000 stitches
Theoretical Max/4 Machines/Month	741.3M stitches	100% theoretical capacity (no downtime)

DOWNTIME ALLOCATION SHEET — REALIST

DOWNTIME CATEGORY	TIME LOSS %	ABSOLUTE LOSS/MO	OPERATIONAL CAUSE
Thread changeover	3.0%	22.2M stitches	Color/material switch · ~2-4 min per changeover · ~8 changes/day
Thread breaks	2.5%	18.5M stitches	Single-head pause · Dahao A18 auto-detect · 2-8 min/event
Needle replacement	1.0%	7.4M stitches	Scheduled at 50K stitches/needle · titanium-coated
Bobbin refill	2.0%	14.8M stitches	Pre-wound bobbins · ~3-4 refills per shift per machine
Order changeover & setup	3.5%	25.9M stitches	Hooping, design load via A18 network, alignment, test stitch
QC inspection pause	1.5%	11.1M stitches	Mid-run sampling — preserves 0.5% defect threshold
Power switching events	0.5%	3.7M stitches	UPS/DG transitions · stabilization recovery
Operator break/handover	1.0%	7.4M stitches	Already partially netted in 18hr — residual buffer
Mechanical reserve buffer	1.0%	7.4M stitches	Unplanned events (motor heat, lubrication recoveries)
TOTAL DOWNTIME RESERVE	16.0%	118.6M stitches	Quantified mean downtime expectation
EFFECTIVE PRODUCTIVE CAPACITY (84%)	84%	622.7M stitches	Realistic max — bounds the 85% util target

✦ RECONCILIATION TO FINANCIAL MODEL TARGET — TERMINOLOGY CLARIFIED

Theoretical max 741.3M stitches/mo × 0.85 utilization target = 630M stitches/mo (this is the "85% of theoretical" goal). However, after deducting 16% realistic downtime (thread break, maintenance windows, shift changeover), effective productive capacity = 622.7M. The financial model uses a conservative 544M stitches/mo which represents 87.4% of effective productive capacity (not 85%). ⚠ This distinction is important: "85% utilization" refers to 85% of theoretical max; the model conservatively operates at 87.4% of effective (= 73.4% of theoretical) — adding a meaningful safety buffer above the downtime-constrained floor. This is the operational proof. 📐 Waterfall util% base note: The monthly ramp-up table (Slide 18) expresses util% against a 640M operational base — defined as: peak model stitches (544M) ÷ 85% target = 640M. This 640M is the implicit capacity baseline that yields "85% utilization" when the model runs at 544M stitches. It is distinct from both theoretical max (741.3M) and effective capacity (622.7M). All three capacity concepts are defined here for clarity — 640M is the waterfall's internal reference base only.

Manufacturing Facility & Scalability Infrastructure

Ready for Phase 1 Deployment · Architected for Phase 2 Expansion · Location: Narayanganj Industrial Zone

Factory Footprint

2,000 sq ft

Phase 1 Floor (4 Machines)

Monthly OPEX Rent

৳45,000

Monthly Lease — Industrial Zone

Working Capital

৳3,500,000

3× Previous Buffer — Full Coverage

⚡ Power Continuity Matrix — 32 kW Generator Architecture

30 KVA Online UPS — Zero-ms power switch; protects all machine PCBs and Dahao A18 controllers from grid fluctuation. No data loss, no production interruption.

32 kW Heavy-Duty Diesel Generator — Sized for full factory load coverage (4 × 6-head CNC + UPS charging + lighting/utility). Auto-transfer switch. 8–10 hrs runtime per full diesel tank.

📋 POWER SUPPLY ARCHITECTURE:
Primary: DESCO/NESCO 3-Phase Industrial Connection (100A) · Backup: 32 kW Diesel Generator (auto-transfer switch) · Stabilization: 30 KVA Online UPS (zero-transfer-time) · Runtime Buffer: 32 kW Diesel Generator provides 8–10 hours uninterrupted production per full diesel tank · Fuel Reserve: Minimum 200 liters on-site maintained · Result: Zero production loss during grid outages.

Facility Zoning & Layout Plan

Location: Narayanganj Industrial Zone (Phase 1 single-site · Phase 2 expands within same zone)
Controller: Dahao A18 — encrypted network push across all 24 heads
Production Floor: 4 × 6-Head CNC Units (24 Heads Total) + 2 Industrial Sewing Machines
Air System Zone: Industrial compressor + refrigerant air dryer + 3-stage inline particulate filter
Acoustic Shell: Rockwool panels (NRC 0.90) + foam board ceiling; external <55 dB
Inventory Hub: Climate-aware thread/bead storage (Miyuki, TOHO, FUJIX, Olympus)
QA/QC Sandbox: Final inspection & dust-proof sealing zone

PHASE 2 — 6-ZONE FACTORY (6,000 SQ FT)

① Production
15–16 CNC units

② Thread Store
Climate-controlled

③ Bead Storage
JP-grade bins

④ Maintenance
Spare parts bay

⑤ Operator Rest
2-shift support

⑥ QC Zone
Dust-proof sealing

Industrial Power, Air & Acoustic Infrastructure

✓ Phase 1 Load: 3-Phase 100A industrial line secured.
✓ PCB Protection: 30 KVA Online UPS (Zero-ms switch) + 32 kW Diesel Generator — full continuity for Dahao A18 systems.
✓ Air System: Industrial compressor → refrigerant dryer → inline filter. Prevents needle jamming and moisture-induced PCB damage.
✓ Soundproofing: 50mm Rockwool acoustic panels + foam board insulation. External noise <55 dB.
✓ Motor Spec: Closed-loop servo-stabilization + compressor on vibration-isolation pads.

PHASE 2 EXPANSION CAPABILITY & FUNDING PLAN

Space Target (M18–M24):

6,000 sq ft (15–16 machines)

Power Upgrade:

200A + 50 KVA DG Backup

Rent Projection:

৳150K–৳200K / month

Site Selection:

Planned M12–M18 based on operational cash flow

📋 PHASE 2 CAPEX FUNDING WATERFALL — ~৳23M BDT (12 additional machines · M18–M30)

FOB Machine Cost
12 units × $17,500 × ৳110 = ৳23.1M

Landed Cost (incl. 31% duty)
৳23.1M × 1.31 = ~৳30.3M

All-in Phase 2 CAPEX
৳33–36M (infra + power + WC)

① EBITDA Reinvestment (Primary)
Y2 EBITDA: ৳5.47M/yr · Y3: ৳7.05M/yr. After Phase 1 OPEX + royalty: ~৳2.5–3.5M/yr available for reinvestment. Cumulative Y2+Y3 retained = ~৳5–7M. Zero dilution, zero debt — preferred route.

② SME Bank Loan (Bridge)
৳15–20M machinery import loan (BRAC Bank SME / Dutch-Bangla / Islami Bank) · 9–12% p.a. · Viable by Y2 with audited Y1 financials. ⚠ Interest cost: ৳1.35–1.8M/yr — factored into Y3+ EBIT sensitivity.
⚠ COLLATERAL RISK: Machine depreciated value at Y2 = ~৳7.45M (3 years remaining at ৳2.484M/yr SL depreciation — consistent with financial model bridge). SME loan of ৳15M exceeds machine collateral by ~৳7.55M. Bank will likely require: (1) Machine asset charge (~৳7.45M), (2) Accounts receivable assignment / hypothecation, and/or (3) Director personal guarantee (standard for SME manufacturing in BD). Founders should be prepared for personal guarantee requirement. This risk is manageable but must be disclosed to investors and factored into founder risk profile.

③ Strategic Round (Fallback)
If GCC export confirmed by Y2: strategic investor round (BD conglomerate or GCC partner) at materially higher valuation. Existing investor's royalty structure and equity position protected per SHA. Secondary option — preserves cap table optionality.

PHASE 2 FUNDING WATERFALL — NUMERICAL PLAN

Source	Available	Timeline	Condition
Y2 EBITDA retained	~৳3M	M13–M24	Y1 revenue target met (৳15.04M+)
Y3 EBITDA retained	~৳3.5M	M25–M36	Phase 2 GCC ramp on track
SME Bank Loan	৳15–20M	Y2 (M18+)	Audited Y1 financials + RJSC cert
SME Loan Interest Cost	−৳1.5M/yr	Y3–Y4	9–12% p.a. on ৳15M loan · already in sensitivity model
Total Phase 2 Fundable	~৳21.5–26.5M	M18–M30	Covers FOB machine cost (৳23M) ✓ · Gap to all-in (৳33–36M): ৳7–14M — see bridge below

✦ PHASE 2 FUNDING GAP — ৳7–14M · 3 RESOLUTION PATHS

Path A — Phased Machine Purchase
Buy 8 machines (not 12) at M18 using ৳21.5M fundable. Remaining 4 machines at M24–M30 from Y3 EBITDA. Extends Phase 2 timeline by 6 months but eliminates gap. Y4 revenue ceiling: ~৳48M on 12 machines — still supports ৳154M exit (2.5× MOIC).

Path B — Convertible Bridge Note
৳10M convertible note at M18 from existing investor or strategic partner (GCC buyer). 12% p.a., converts to equity at Y4 exit at 20% discount to M&A price. SHA pre-authorizes this tranche. Dilution: ~4–5% equity. Existing investor equity protected at 25% minimum per SHA.

Path C — SME Loan Ceiling Increase
With Y2 audited revenue (৳22.85M · Model C) and positive EBIT, negotiate SME loan from ৳15M to ৳22–25M (BRAC Bank / Dutch-Bangla machinery import facility). Interest cost: ৳2.0–2.5M/yr — already partially modeled. Viable if Y1 financials are clean and RJSC-certified.

Investor Implication: The ৳7–14M gap is acknowledged and has 3 viable resolution paths. Path A has zero dilution risk. Path B has minor dilution (4–5%). Path C is debt-only. Preferred path decision at M12 based on Y1 revenue performance. This gap does not threaten Y1–Y3 operations — it only affects Phase 2 deployment timeline.

Machine Procurement — Manufacturer Quotations & CAPEX Basis (April–May 2026)

5 Manufacturers Quoted · 6-Head CNC Full-Spec (Flat + Sequin + Bead + Cord) · Model CAPEX $17,500/Unit Validated as Conservative

✦ $17,500/UNIT CAPEX ASSUMPTION IS CONSERVATIVE — BELOW 2 OF 5 FULL-SPEC QUOTES

AURAQ received 5 official quotations from manufacturers across China and BD in April–May 2026. Full-spec (flat + dual-sequin + bead + cord) prices range from $15,050 EXW (DOIT, 4 units) to $28,000 FOB (Maya). The model's $17,500/unit sits 16% above the cheapest full-spec option — building in a procurement buffer. All quotations addressed to Auraq Apparels & Embellishment, Anik Islam Sunny, available in data room.

5-MANUFACTURER QUOTATION COMPARISON — FULL SPEC (FLAT + SEQUIN + BEAD + CORD) · 6 HEADS

SUPPLIER · DATE	MODEL / BRAND	FULL-SPEC UNIT PRICE	PRICE BASIS	DELIVERY	WARRANTY	PAYMENT	NOTES
DOIT Group Ltd. Taizhou, Zhejiang · Apr 24, 2026	DT 1206F 6H · 12N	$15,050/unit 4-unit order · EXW Taizhou	EXW Taizhou	Custom ~40 days	1 Year Parts	T/T 100% pre-ship	LOWEST FULL-SPEC PRICE. Full cord/dual-sequin/bead included. Volume pricing: 1 unit $15,550 · 4 units $15,050 · 6 units $14,900. EXW Taizhou → add ~$350-500/unit inland+FOB → estimated $15,400–$15,550 FOB. CAPEX model $17,500 = 13.2% buffer above DOIT.
Alibaba Listing Zhejiang Manufacturer · Apr 2026	JLC/METE A8 6H · 15N	$16,900/unit FOB · OLH Sequin incl.	FOB	~40 days	Standard	T/T	Double camshaft 3-link head · Japan Hirose 1.6 hook · Germany belt · 1500 RPM (real 1200 RPM) · OLH single pearl + 2 sequins per head included. FOB $16,900 = 3.5% below model $17,500. 15 needles (vs 12) = more color-change capability.
MAST Tech Intl. BD Distributor · RiCOMA (Huizhou) · Apr 27, 2026 · No.30/2026	MFC-061206 RiCOMA · Dahao D19	$31,400/unit (full-spec) Base $17,500 + Accessories $13,900	FOB Any China Port	60 days after LC	1 Year Parts	100% LC irrevocable	⚠ $17,500 is BASE MACHINE ONLY (flat only, no accessories). 4 colors sequin (+$4,500) + Cording & Tapping (+$3,600) + Color beads (+$4,800) = +$12,900 → Full-spec = $31,400. BD local distributor markup included. Origin: RiCOMA Huizhou. HS 8447.90.00 confirmed. Includes air compressor free. Local BD commissioning by MAST engineers.
BCD Machinery Nanjing · PI-2026-010 · Apr 21, 2026	BEM-612 Dahao A58 · 6H	$23,500/unit FOB 4 units = $94,000 FOB	FOB	40 days after deposit	2 Yr Dahao Board 2 Yr Servo Motor	50% deposit +50% pre-ship	PREMIUM OPTION — Dahao A58 (newer than A18). Full multi-function: double sequin (3–9mm) + bead (2.5–5mm) + cord in 1 process. CE certified. Layout: 4 machines need 20.4m × 2.7m = consistent with AURAQ floor plan. Remote 1hr support, 16hr online. 2yr warranty on electronics. $23,500 = 34% above model — not selected but validates $17,500 as highly conservative.
Zhuji Maya Zhejiang · Invoice 22MYBD2204A · Apr 22, 2026	FH-1206 6H · 12N	$28,000/unit CFR Chittagong (incl. freight)	CFR Chittagong	90 days after LC	1 Year Conditional	LC at sight	2-color sequin + 4-color beads + cording included. NINGBO→Chittagong. 90-day lead time = longest of all options. CFR price includes freight so not directly comparable; strip freight (~$1,250/unit) → ~$26,750 FOB equivalent. 60% above model price — not competitive for AURAQ's Phase 1.
✦ MODEL CAPEX ASSUMPTION (Selected)		$17,500/unit FOB	Conservative mid-point. $17,500 is 13.2% above cheapest full-spec quote (DOIT $15,050 EXW → ~$15,500 FOB) and 3.5% above Alibaba listing ($16,900 FOB). 4 units = $70,000 FOB → ৳7.7M at ৳110/USD. Phase 2 (12 units): DOIT volume pricing $14,900/unit → saves ~$30,720 vs model → partial Phase 2 gap reduction. CAPEX assumption is independently validated and conservative.

CAPEX LINE-BY-LINE VALIDATION

CAPEX LINE	MODEL	QUOTATION BASIS
Machine FOB (4 units)	৳7,700,000	$17,500 × 4 × ৳110. DOIT 4-unit: $15,050 EXW → FOB ~$62,200 (৳6.84M). Buffer = ৳860K.
Ocean Freight + Insurance	৳420,000	Maya quoted $2,500 for 40ft container (2 machines). 4 machines = 1×40HC → ~$2,800–$3,200. ৳420K ≈ $3,800 = slight buffer.
NBR Custom Duty (31%)	৳2,517,200	HS 8447.90.00 per MAST Tech quotation. 31% cumulative on CIF. Subject to NBR assessment at import.
BCD Floor Load	N/A in model	BCD PI: 400 kg/m² floor loading. 4 machines = 7,200 kg total — within reinforced slab capacity.
Total Phase 1 CAPEX	৳18,000,000	Conservative vs. actual quote range. Cheapest viable build: ~৳15.8M (DOIT + actual freight). Buffer: ৳2.2M.

✦ PHASE 2 CAPEX IMPROVEMENT OPPORTUNITY:

DOIT 6-unit pricing = $14,900/unit EXW. Phase 2 order of 12 units → negotiate 2× 6-unit batches = $14,900/unit → saves ~$2,600/unit vs. model's $17,500. 12-unit saving: ~$31,200 (৳3.4M) — directly reduces Phase 2 funding gap from ৳7–14M by ৳3.4M (Path A advantage).

PROCUREMENT TERMS COMPARISON & IC RECOMMENDATION

CRITERION	DOIT (Recommended)	BCD (Premium Alt.)	MAST Tech (Local BD)
Full-Spec Unit Price	$15,050 EXW (4 units)	$23,500 FOB	$31,400 FOB (incl. accessories)
Controller System	Standard Dahao	Dahao A58 (superior)	Dahao D19
Warranty (Electronics)	1 Year	2 Years (board + servo)	1 Year (parts only)
Lead Time	Custom ~40 days	40 days after deposit	60 days after LC
Payment Flexibility	T/T 100% pre-ship	50% deposit + 50% pre-ship	100% LC (rigid)
Local BD Support	Remote only	Remote only	Local engineers
BD Market References	N/A	N/A	SINSIM: 100+ BD clients incl. Youngone (500 machines), Beximco, Pakiza

✦ RECOMMENDED PROCUREMENT STRATEGY

Phase 1 (4 machines): DOIT Group at $15,050 EXW (4-unit price) = ~$62,200 FOB → ৳6.84M FOB. Saves ৳860K vs. model → adds to working capital buffer. Payment: T/T with LC fallback for investor comfort.
Phase 2 (12 machines): Negotiate DOIT 6-unit batch × 2 at $14,900/unit = $14,900 × 12 = $178,800 → ৳19.67M. Reduces Phase 2 capex requirement by ৳3.4M — meaningful gap reduction.
Alternative consideration: BCD's Dahao A58 controller (2-year warranty, CE certified, superior spec) at $23,500 FOB is worth evaluating for Phase 2 if GCC premium client requires certified machinery.

✦ BD MARKET VALIDATION — SINSIM USER LIST (CHAMPION FAMILY): 100+ BD CLIENTS · CONFIRMS BD EMBROIDERY MACHINE DEMAND

Youngone Corporation
CEPZ, Chittagong · 500 machines — largest single buyer in BD, confirms large-scale RMG embroidery demand

Beximco Embroidery
Gazipur · 23 machines · Pakiza Group: 50 machines · SARA Group: 5. Confirms Dhaka/Gazipur corridor demand

Narayanganj Cluster
Kwun Tong Apparels (4), Mita Group (4), Uttara Orna House (2), UBF Bridal (2) — AURAQ's home district · active buyers

RMG + Boutique Mix
100 companies across Dhaka, Gazipur, Narayanganj, Narshingdi, Tangail, Sylhet — validates nationwide BD embroidery market depth. AURAQ targets the same geography.

Capital Allocation & Currency Risk Stress Test

৳18M Capex · 4 CNC Units @ \$17,500 USD/unit · 31% Import Duty · 5-Year SL Dep ৳207,000/mo · WC Buffer ৳3,500,000

      ⚠ CURRENCY RISK DISCLOSURE:
       Since procurement is in USD, exchange rate fluctuations combined with the 31% cumulative import duty and freight charges directly impact landed CAPEX. A 5% USD/BDT spike adds ~৳550K overrun — absorbed within ৳18M budget with ৳3.5M working capital buffer.
    

CAPITAL EXPENDITURE CATEGORY	AMOUNT (BDT)	% CAPEX	STRATEGIC NOTE
Machine Cost (4 × 6H CNC @ \$17,500 USD/unit)	7,700,000	42.8%	4 × \$17,500 = \$70,000 USD × ~৳110/USD = ৳7.7M BDT
Ocean Freight + Insurance (FOB Guangzhou → Chittagong CIF)	420,000	2.3%	Sea freight estimate + cargo insurance premium. CIF Total = ৳8,120,000
Custom Duty (31% cumulative on CIF value ৳8,120,000)	2,517,200	14.0%	31% × ৳8,120,000 = ৳2,517,200
Port Handling + Forwarding + Transport to Factory	362,800	2.0%	Port handling, C&F agent fees, customs docs, inland transport
2 Industrial Sewing Machines (Sampling & Validation)	150,000	0.8%	Industrial-grade sewing units for pre-production sampling
MACHINERY + IMPORT SUBTOTAL	11,000,000	61.2%	⚠ USD-denominated. 5% USD/BDT spike = +৳550K overrun.
Infrastructure (30 KVA UPS + 32 kW Generator, HVAC, Compressor, Acoustic, Electrical, Rent Adv)	1,800,000	10.0%	Included in depreciable base. 380V 3-Phase, 30 KVA UPS, 32 kW Diesel Generator, refrigerated air dryer, Rockwool soundproofing
Facility Setup (Furniture, Dahao A18 Software, IT, Security)	1,000,000	5.6%	Included in depreciable base. Dahao A18 IP system license, ERP setup, surveillance, workstations
Contingency Reserve / Pre-Launch Marketing	700,000	3.9%	Pre-production marketing, sample production, client acquisition activities, legal/registration fees
Working Capital Buffer [Current Asset — includes ৳700K raw materials starter stock]	3,500,000	19.4%	Covers payroll (incl. Fashion Designer), rent, electricity, diesel fuel, raw materials (৳700K starter stock sub-component within this ৳3.5M — not a separate CAPEX line), and operations through Month 3+ pre-revenue ramp. Verification: ৳11M machinery + ৳1.8M infra + ৳1M setup + ৳700K contingency = ৳14.5M fixed CAPEX + ৳3.5M WC (incl. ৳700K raw materials starter stock) = ৳18.0M total. ✓
TOTAL INVESTMENT (CAPEX + WC)	18,000,000	100%	Fixed CAPEX = ৳14.5M (machinery ৳11M + infrastructure ৳1.8M + setup ৳1M + contingency ৳700K) \| Working Capital = ৳3.5M (cash ops buffer ৳2.8M + raw materials ৳700K) \| ৳14.5M + ৳3.5M = ৳18.0M \| Depreciable base: ৳13.8M (৳700K contingency expensed in Y1 as pre-revenue cost, not capitalised). 5-Year Straight-Line, 10% salvage: ৳13.8M × 90% = ৳12,420,000 ÷ 5yr = Annual Dep ৳2,484,000 \| Monthly = ৳207,000.

IMPORT DUTY

31%

HS Code — Embroidery Machinery

WORKING CAPITAL

৳3.5M

Enhanced 3× Buffer

DEPRECIATION

5-Year SL

৳207,000/mo

TOTAL CAPEX

৳18M

CAPEX + WC + Contingency

Machine Procurement & Deployment Validation

Securing the Core Hardware Asset Base Direct From Guangzhou | 4 Units @ \$17,500 USD | 31% Import Duty | CIF ৳8,120,000

PROCUREMENT VECTOR	CONFIRMED SPECIFICATION
Hardware Platform	Maya / Sinsim / Ricoma CNC Embroidery Platform — best unit from RFQ across all three manufacturers
Sourcing Origin	Guangzhou, China (Direct Ex-Factory)
Unit Count	4 Units (6-Head CNC per unit \| 24 Heads Total)
Unit Price	\$17,500 USD per unit ex-factory \| Total \$70,000 USD (≈৳7.7M BDT)
CIF Value (Machine + Freight)	৳8,120,000 BDT (৳7,700,000 + ৳420,000 freight/insurance)
Import Duty	31% cumulative = ৳2,517,200 BDT
Landed Cost (4 Units)	৳11,000,000 BDT incl. 31% Duty, Freight, Insurance, Port & Transport
Controller	Dahao A18 Control System (Licensed)
Warranty SLA	12-Month Base Warranty on critical electronics and motors
Est. Lead Time	25–35 Days via Ocean Freight (Chittagong Port)

IMPORT LOGISTICS & DEPLOYMENT WORKFLOW

STEP	STAGE	TIMELINE	DESCRIPTION
01	Supplier Selection	Week 1	RFQ finalization with Maya/Sinsim/Ricoma factory; quotation at \$17,500 USD/unit
02	L/C Opening	Week 1–2	Letter of Credit issued via local bank; USD lock-in to mitigate exchange rate exposure
03	FOB Shipment	Day 7–10	Factory ships via ocean freight; FOB terms Guangzhou Port; container inspection at origin
04	Port Arrival	Day 25–35	Chittagong Port arrival; documentation lodged with C&F agent
05	Custom Duty Payment	Day 35–42	31% cumulative customs duty = ৳2,517,200; VAT settlement; port clearance
06	Factory Transport	Day 42–45	Inland transport Chittagong → Narayanganj factory
07	Installation & Calibration	Day 45–50	Machine placement, 380V line connection, Dahao A18 controller activation, UPS & Generator integration
08	Trial Production	Day 50–55	Quality test runs on all 24 heads; precision verification at 0.1mm tolerance

* Total deployment timeline: ~55 days from L/C opening to first commercial production run.

Organizational Architecture & Payroll Structure

17-Person Team · Monthly Payroll ৳254,500 · Tuhin Chief Engineer ৳27,500 · Fashion Designer In-House

FULL ORG CHART & MONTHLY PAYROLL

ROLE	COUNT	UNIT SALARY	MONTHLY TOTAL
Founder & CEO (Anik Islam Sunny)	1	Sweat Equity (M1–M6) → ৳35,000/mo from M7 (benchmark: BD SME CEO comp ৳30K–৳45K; set at midpoint pending investor confirmation in SHA) → reviewed at Y2 profitability milestone (cap ৳60,000/mo through Y3 exit)	৳0 (M1–M6) · ৳35,000 (M7+, cap ৳60K)
Chief Engineer (Omar Faruque Tuhin)	1	৳27,500	৳27,500
Punching Master (Dahao A18 Lead)	1	৳24,500	৳24,500
Fashion Designer & Design Analyst	1	৳23,500	৳23,500
Senior Machine Operators (CNC × 6-Head)	2	৳18,000	৳36,000
Junior Machine Operators	2	৳14,000	৳28,000
Helpers / Apprentices	2	৳9,000	৳18,000
QA / QC Inspector	1	৳15,000	৳15,000
Sewing Machine Operators	2	৳12,000	৳24,000
Packing & Dispatch	1	৳9,500	৳9,500
Accounts & Admin	1	৳13,000	৳13,000
Security / Night Guard	1	৳10,000	৳10,000
Content Creator & Social Media Manager (Video · Editing · Brand) ⚡ Recommended: Onboard M3+ (post first revenue)	1	৳25,500	৳25,500
TOTAL PAYROLL	17	—	৳254,500 / mo

✦ FASHION DESIGNER & DESIGN ANALYST — STRATEGIC ROLE

In-house design strategist responsible for trend analysis, custom B2B design portfolios, GCC export collection planning, and pre-production design validation. Critical for Tier 2 & Tier 3 upsell — converts standard ৳2.80/1K orders into ৳3.20–৳6.80/1K premium engagements via design consultation. Cost: ৳23,500/mo · Direct ROI: 1–2 incremental Tier 2 conversions per month = ~৳50K+ EBIT uplift.

✦ CONTENT CREATOR — LONG-HORIZON BRAND PLAY (M3+ Onboarding)

AURAQ begins as a B2B precision embroidery house — but the long-term vision is an own-brand D2C product line (Phase 3, Year 3+). Brand equity takes 2–3 years to build. The Content Creator role is the infrastructure investment for that future: building AURAQ's social media presence, audience familiarity, and brand credibility early — so that when AURAQ Signature launches, it enters a market where the brand is already known, trusted, and contextually positioned. Recommended onboarding: M3 (post first revenue confirmation) — saves ৳51,000 in Q1 cash, strengthens WC buffer by 2 payroll cycles, and aligns content production with actual factory footage. ৳25,500/mo from M3 = 2–3 years brand equity runway built cost-efficiently.

Phase 1 (Y1–Y2):
B2B brand trust. Factory storytelling. Precision content. GCC-awareness building.

Phase 2 (Y2–Y3):
GCC-facing content. Export positioning. Modest fashion authority.

Phase 3 (Y3+) — AURAQ Signature D2C:
Launch to a pre-warmed, brand-familiar audience. Vision: Bangladesh's most premium, most valuable modest fashion brand — a cultural movement, not just a label. Target customer: age 10 to 60 — the full spectrum of modest fashion consumers, from school-age to senior. The modest fashion revolution, made in Bangladesh.

PAYROLL DISTRIBUTION — BY ROLE (% OF ৳254,500 TOTAL)

ROLEAMOUNT

Payroll (16 staff M1–M6
17th = founder sweat equity · ৳0 payroll M1–M6)

৳254,500

Depreciation

৳207,000

Electricity + Diesel

৳105,000

Rent

৳45,000

Maintenance + Admin

৳43,000

Logistics + Comms

৳20,500

TOTAL PEAK OPEX

৳675,000

Cash OPEX (ex-dep)

৳468K

per month

WC Months Coverage

7.5 mo

৳3.5M ÷ ৳468K

Payroll % of OPEX

54.3%

of total ৳468K cash

📊 PEAK MONTHLY OPEX BREAKDOWN

OPEX CATEGORY	AMOUNT
Total Payroll (16 staff M1–M6 · founder = sweat equity ৳0 · from M7: 17 staff ৳289,500)	৳254,500
Factory Rent (2,000 sq ft)	৳45,000
Electricity (Grid + Generator)	৳70,000
Diesel Fuel (32 kW Generator)	৳35,000
Depreciation (5-yr SL)	৳207,000
Maintenance Reserve	৳25,000
Admin / Accounting / IT	৳18,000
Internet / Communications	৳5,500
Logistics / Delivery	৳15,000
TOTAL PEAK OPEX ★ Includes dep. ৳207K; excl. insurance ৳29K (sep. line). Cash OPEX ex-dep = ৳468K; with insurance = ৳497K. See Slide 20 table.	৳675,000

CHIEF ENGINEER

Execution Authority · Day-1 Hire

Omar Faruque Tuhin

BSc Electrical Engineering · 5+ Years Industrial Machine Management

CNC SPECIALIST DAHAO A18 380V CERTIFIED 30 KVA UPS

⚙ Machine Engineering

4-unit CNC platform · Dahao A18 controller · 24-head calibration & maintenance

⚡ Power Systems

380V 3-Phase · 30 KVA UPS · 32 kW diesel generator · BNBC electrical compliance

🔧 Preventive Maintenance

Daily 20-min PM · rotary hook & bobbin inventory · 24hr Guangzhou diagnostic

🛡 Factory Safety

CO₂ suppression · smoke detection · fire evacuation SOPs · HVAC oversight

Operational Workflow & Standard Operating Procedures

7-Step Precision Production · 18hr Dual-Shift · 26 Days/Month · 85% Efficiency Target · Dahao A18 QC

7-Step Precision Production Process

01

Intake

→

02

Punching

→

03

A18 Push

→

04

Prod (18hr)

→

05

QC Check

→

06

Packing

→

07

Delivery

        FACTORY SOP & DAILY LOGS
        Machine Startup: Mandatory 20-min preventive maintenance (Lubrication/Tension on Dahao A18).
Shift Handover: Ledger audit for stitch counts, downtime, and raw materials.
Burn Rate Audit: Daily system check of thread/beads used per 1K stitches (target ৳0.98 COGS).

      

        THE FOUNDER'S DASHBOARD
        Daily (9:00 AM): WhatsApp reporting of previous day's stitch count and machine efficiency %.
Weekly: B2B sales pipeline update (Samples vs Trial conversions). Royalty accrual tracker update.
Monthly (5th): Financial audit, ERP balance sheet, A/R reconciliation, investor royalty statement.

      

Daily Runtime

18 hrs

Working Days

26 /mo

Efficiency Target

85%

of theor. max
(= 630M stitches target)

Financial Model Capacity

544M stitches/mo

conservative (73.4% theor.)
= 87.4% of post-downtime effective

Day-0 Pipeline & Validated Demand Engine

৳252,000+/mo Pre-Verified Revenue · Confirmed Anchor Order · Sample Production Validated · 6 Active Conversations

Auraq enters Day 1 with a pre-verified, operationally-validated demand pipeline exceeding ৳252,000/month. The Dubai Borka House confirmed order is operational, not exploratory — backed by sample delivery, active communication trail, and trial-order commitment.

CLIENT VERTICAL	STATUS	MONTHLY VOL.	REVENUE	1 STATUS
Dubai Borka House (Anchor Export)	✓ Confirmed Order + Sample Delivered	30M stitches	৳84,000	✓ Active M1 Intro Tier 1 rate; Tier 3 (৳6.50/1K) pre-negotiated for Phase 2 scale-up
Premium Dhaka Boutique #1	In Negotiation	20M stitches	৳56,000	Trial M2–M3
Premium Dhaka Boutique #2	In Negotiation	15M stitches	৳42,000	Trial M2–M3
Mid-Tier RMG Sub-Contractor	Sample Approved	15M stitches	৳42,000	Contract M3–M4
Bridal Couture Atelier	Sample Pending	10M stitches	৳28,000	Active M4+
DAY-0 BASELINE (Full)	5 Verified Verticals	90M stitches	৳252,000/mo	M3–M4 Full
1 REALISTIC	Dubai + 1–2 trials	~52–59M stitches	৳144K–৳165K

✦ ORDER VALIDATION EVIDENCE — DUBAI BORKA HOUSE (ANCHOR CLIENT)

▸ Evidence Tier: Not purely verbal — backed by: (1) physical sample delivery, (2) documented communication trail, (3) pricing pre-negotiated. BD boutique trade standard: written contracts follow machine delivery, not precede it. Investor to verify WhatsApp archive + sample delivery proof in data room.

▸ Sample Delivered: Trial batch (8M stitches, 4 designs) physically delivered to Dubai showroom — client received, inspected, and approved quality.

▸ Communication Trail: Active WhatsApp/email archive since Aug 2025 — timestamps verifiable. Available in investor data room under NDA.

▸ Order Commitment: 30M stitches/mo · ৳84K/mo at Tier 1 entry rate · advance payment terms pre-agreed (eliminates credit risk).

▸ Phase 2 Scale Pre-Agreed: Tier 3 Export rate (৳6.50–৳6.80/1K) verbally committed for scale-up — in writing upon Phase 2 activation.

Note: Formal written contract to be executed post-RJSC registration + machine delivery (standard BD trade sequence). Investor condition precedent: written offtake agreement to be signed before Tranche 2 release (within M2).

7-STAGE ACQUISITION FUNNEL — MONTHLY VOLUME

STAGE BREAKDOWN

01Lead GenWarm referrals + LinkedIn + factory tours50/mo

02QualifiedVolume ≥5M stitches/mo, terms aligned40/mo

03SamplingFree 1–2 design sample run via Dahao A1830/mo

04Trial OrderPaid trial 5–10M stitches at Tier 1 rate12/mo

05ContractMonthly SLA · 30/30/40 payment schedule6/mo

06Repeat OrderRecurring monthly · volume rate negotiation4/mo

07Reference SaleClient referrals to GCC modest fashion net2/mo

END-TO-END CONVERSION 12.0% 6 clients / 50 leads

Demand Validation — Primary Research, Confirmed Order Terms & Market Triangulation

Primary B2B Interviews · Confirmed Order Commercial Terms · HS5810 Import Displacement Data · Concentration Risk Framework

Primary Market Research — B2B Validation

Research Method	Sample	Key Finding
B2B Buyer Interviews	12 boutiques	92% dissatisfied with current embroidery turnaround (14–21 days). 75% willing to pay 5–10% premium for 7-day SLA.
GCC Retailer Survey	8 buyers	100% sourcing from China/UAE at 90-day lead time. All interested in BD supplier at 30-day equivalent if quality meets standard.
Competitor Sampling	6 vendors	Manual embroidery: 35–40% defect rate above 10M stitches. AURAQ CNC target: <0.5% defect rate — validated by Dahao spec.
Price Sensitivity Test	15 buyers	৳2.50–৳3.20/1K accepted by 11/15 buyers (73%). AURAQ Day-1 pricing ৳2.80/1K sits at median — validated.
BD Import Data (NBR)	2020–2024	HS5810 BD imports: $28–34M/yr from China+UAE. Growing 12% CAGR. AURAQ targets 3–4% displacement = $1M+ addressable.

Research Conclusion: Demand is real, price-validated, and urgently unmet. CNC automation gap creates switching incentive without any price competition needed.

Dubai Borka House — Confirmed Order Commercial Terms

Volume Commitment
30M stitches/month (Phase 1) · Ramp clause: 50M/mo at M12 · 80M/mo at M24 (pre-discussed)

Pricing Tiers
Tier 1: ৳2.80/1K (intro) · Tier 2 Standard: ৳3.20/1K (boutique premium) · Tier 2 Large-Volume Custom Design: ৳4.50/1K (Dubai Borka House 30M+ stitches/mo with custom design brief) · Tier 3: ৳6.50/1K (export premium) [Note: ৳4.50 is a custom-design premium rate for anchor clients with 30M+ monthly volume requiring exclusive design work — higher than standard Tier 2 (৳3.20) because bespoke design adds ~2–4 hrs operator time. Phase 1 blended model uses ৳2.80 Tier 1 rate only; ৳3.20–৳4.50 Tier 2 upside is not modeled in base financials. See unit economics slide.]

Payment Terms
30% advance · 30% on dispatch · 40% within 15 days receipt. No credit risk — advance covers COGS.

Quality SLA
<0.5% defect rate · 7-day turnaround · Re-do clause: free redo within 48hrs for defects above threshold

Exclusivity Clause
Non-exclusive. AURAQ retains right to serve all BD clients simultaneously. No market restriction.

Evidence in VDR
WhatsApp archive (Aug 2025–present) · Sample delivery photos · Trial production specs · Written communication trail

Client Concentration Risk — Analysis & Mitigation Framework

Concentration at Y1 (Risk Period)

Dubai Borka House33%

Boutique #1 + #239%

RMG Sub-Contractor17%

Bridal Couture11%

⚠ Y1 HHI: 0.235 — moderately concentrated. Acceptable for early-stage manufacturing.

Y2–Y3 Target Diversification

GCC anchor clients (2–3)35%

BD premium boutiques (5+)30%

RMG sub-contractors (3+)20%

AURAQ Signature (D2C)15%

✓ Y3 HHI target: <0.10 — well-diversified. No single client >20% of revenue.

Anchor Client Loss Stress Test

Scenario: Dubai Borka House exits at M6

Revenue impact: ৳84K/mo (33% loss)

Replacement timeline: 4–6 weeks (2 Dhaka boutiques in pipeline at same volume)

Cash runway impact: Runway extends from 7.0 to 5.5 months (still safe) — within contingency buffer

SHA trigger: Investor notified within 7 days. Joint review within 14 days.

Business survives anchor loss. Not terminal. 5 pipeline replacements in active funnel.

✦ DEMAND VALIDATION VERDICT — PRIMARY RESEARCH VERIFIED

Primary research across 41 buyers confirms: price validated (৳2.80/1K at median), quality gap confirmed (<0.5% vs 35–40% manual defect), and demand urgency verified (7-day SLA premium). Confirmed order from Dubai Borka House is operational with advance payment clause — eliminating credit risk. HS5810 BD import data ($28–34M/yr growing 12% CAGR) confirms displacement opportunity. Concentration risk managed by 5-vertical pipeline and SHA client loss protocol.

PRIMARY RESEARCH CONFIDENCE SCORES — 41 BUYERS

Y1 CLIENT CONCENTRATION MIX

GCC Export Pipeline — Buyer Status & Phase 2 Validation

1 Anchor Confirmed Order + 3 Qualified Prospects · Sample Programme Active · Phase 2 Revenue De-Risked Beyond Single Buyer

⚠ NOTE: Phase 2 GCC revenue (Y2 ৳2.4M incremental, Y3 ৳8.48M) requires export buyer pipeline beyond Dubai Borka House alone. This slide documents the active GCC pipeline — concentration is a tracked risk with mitigation in place from Day 1.

BUYER / ENTITY	GEOGRAPHY	STATUS	VOLUME POTENTIAL	REVENUE	NOTES
Dubai Borka House Anchor Export Buyer	UAE · Dubai	✓ CONFIRMED ORDER	30M stitches/mo	৳84K–৳195K/mo Tier 1 → Tier 3 ramp	Sample delivered. Trial order on machine delivery. Scale to Tier 3 (৳6.50/1K) pre-negotiated for Phase 2 volume. Buyer handles destination customs — AURAQ has no UAE import exposure.
KSA Premium Abaya Retailer Boutique chain · KSA	KSA	SAMPLE SENT	20–40M stitches/mo	৳130K–৳260K/mo	4 DST designs submitted. Feedback pending. Initial contact via Dubai Borka House referral network. ESMA certification not required for embroidery-only supply to local retailer.
Qatar Retail & Wholesale Partner Retail + wholesale · Qatar	Qatar	IN DISCUSSION	15–25M stitches/mo	৳98K–৳163K/mo	Initial contact via founder's GCC trade network. Requesting sample programme post-machine installation. Hajj/Eid seasonal surge buyer — high-value seasonal contract potential.
UAE Wholesale Distributor Mainland UAE distributor	UAE	PROSPECT	25–35M stitches/mo	৳163K–৳228K/mo	Identified via BGMEA GCC trade mission contacts. Outreach initiated. Distributor model — single contract supplies 12–15 downstream retailers. High-volume potential if converted.
PHASE 2 GCC PIPELINE TOTAL		1 Confirmed + 3 Active	90–130M stitches/mo	৳470K–৳840K/mo at full Phase 2 ramp	Conservative Phase 2 model uses only Dubai Borka House confirmed order + 1 converted prospect. Remaining 2 buyers = upside optionality — not in base case.

Anchor Buyer

1 Confirmed

Dubai Borka House · Active Q4 2025

Active Prospects

3 Buyers

KSA: Sample Sent · Qatar: In Discussion · UAE: Prospect

Single-Buyer Cap (GCC)

40%

Max GCC revenue from any 1 buyer from M18

Phase 2 Break-Even

1 Buyer

Dubai order alone validates Phase 2 EBIT

GCC BUYER ACTIVATION TIMELINE — CONSERVATIVE VS. UPSIDE

📌 CONSERVATIVE BASE MODEL (used in financials)

Month	Event	GCC Revenue
M13–M15	Dubai Borka House full-scale order	৳195K/mo
M16–M18	1 prospect converted (KSA or Qatar)	+৳130–163K/mo
Y2 GCC Total	2 buyers active	৳2.4M

★ UPSIDE (3 buyers active by M18)

Month	Event	GCC Revenue
M13	Dubai Borka House full scale	৳195K/mo
M15	KSA + Qatar both convert	+৳260–423K/mo
Y2 GCC Total	3+ buyers active	৳4.1M+

✦ GCC CONCENTRATION RISK — MANAGED

Conservative financial model uses Dubai Borka House confirmed order + 1 additional GCC prospect for Y2 projections — making base case achievable with a single buyer conversion. Additional 2 prospects (KSA, UAE) are pure upside. All GCC buyers operate under a 40% single-buyer revenue cap from M18. Founder actively building GCC referral network via Dubai Borka House relationship and BGMEA trade channels.

Revenue Mix & Channel Diversification Strategy

Phase 1 Channel Mix · 25% Concentration Cap · 4-Vertical Diversification

Auraq enforces a 25% single-client revenue concentration cap from Month 4 onward — explicit risk mitigation against client dependency. Revenue is diversified across 4 client verticals from Day 1.

CLIENT VERTICAL	REV SHARE	PRICING TIER
Export Garment Manufacturers (RMG)	50%	Tier 1: ৳2.80/1K
Premium Boutiques (Dhaka/Chittagong)	25%	Tier 2: ৳3.20/1K
D2C / Online Modest Fashion Brands	15%	Tier 1–2 mix
Bridal Couture / Custom Atelier	10%	Tier 2: ৳3.20/1K
TOTAL DIVERSIFIED MIX	100%	Blended ৳2.80–৳3.05

          ⚠ CONCENTRATION RISK MITIGATION
          From Month 4, no single client exceeds 25% of monthly revenue.
If a single client crosses the threshold, Auraq actively diverts new orders to alternate verticals or enforces a volume cap.
This protects against payment delays, cancellation shocks, and pricing leverage abuse.

        

REVENUE CHANNEL MIX VISUALIZATION

PHASE 2 EXPORT SHIFT (Y2)

From M13+, GCC export channel scales to 35–40% of revenue at ৳6.50–৳6.80/1K (Tier 3 Export rate). Blended Y2 rate rises to ৳3.80–৳4.20/1K.

Revenue Conversion Funnel — Lead Source & Justification

12% End-to-End Conversion Defended Against Industrial B2B Benchmarks (3–7% Cold)

Investor diligence: "What is the basis of your 12% conversion assumption?" Industrial B2B cold conversion = 3–7%. Auraq's 12% is achievable because lead source is predominantly warm, not cold. Below is the lead-source mix proof.

⚡ Verified Day-0 Traction — Pre-Production Confirmed Order

First Client

Ariful Islam

Owner — A+ Borka House
Vulta, Gausia, Rupganj, Narayanganj

Monthly Order Volume

2,000 borkas

× 45K stitches/borka avg
= 90M stitches/mo

= ৳252,000/mo (@ ৳2.80/1K)

Pipeline Status

4 in Progress

Verbal agreements in place
Formal contracts post-RJSC
(standard BD trade practice)

M1 Utilization from A+

46.8%

90M ÷ 192M M1 stitches
Day-0 client alone covers
46.8% of M1 production

📐 Stitch Math — A+ Borka House Monthly: 2,000 borkas × 45,000 stitches/borka (boutique borka average) = 90,000,000 stitches/mo × ৳2.80 per 1,000 stitches = ৳252,000/mo recurring revenue. This is a monthly recurring order — not one-time. At M1 production capacity (192M stitches/mo), A+ Borka House alone contributes 46.8% utilization — materially de-risking M1 ramp. | Verbal commitments from 4 additional clients are BD-standard pre-contract agreements. Formal written contracts will be executed after RJSC company registration is complete and production capability is established. This is consistent with BD boutique trade norms where verbal orders precede legal documentation.

⚠ M1 Utilization Breakdown: A+ Borka House covers 46.8% of M1 capacity (90M of 192M stitches). The remaining 53.2% (102M stitches) is filled by: (1) 4 additional verbal-committed BD boutique clients averaging 15–20M stitches each (~70M stitches combined), (2) spot-market trial orders from walk-in boutiques (standard practice in BD embroidery — 10–15M stitches/mo), and (3) sample production and new client onboarding runs. M1 30% utilization is a blended, conservative production plan — not reliant on any single order surge. WC buffer (৳3.5M) fully covers shortfall risk if M1 ramps at 20% instead of 30%.

LEAD SOURCE COMPOSITION — WARM VS. COLD

LEAD SOURCE	% OF LEADS	TYPE	CONV. RATE	BASIS
Founder Anik's production showcase (M3+)	35%	WARM (facility)	18–22%	Operational factory visits, sample runs, word-of-mouth from live production
Founder Anik's direct B2B network	25%	WARM (intro)	15–18%	Pre-launch outreach · existing buyer rolodex
Existing client referrals (M3+)	15%	WARM (organic)	20%	Word-of-mouth from happy B2B clients
LinkedIn outreach (cold)	15%	COLD	5–7%	Industry-standard cold B2B benchmark
Content marketing inbound	10%	WARM (inbound)	12–14%	TikTok/Reels by Content Writer drives discovery
WEIGHTED AVERAGE	100%	75% WARM	~12.0%	Mathematically derived from source mix

7-STAGE FUNNEL VOLUME

STAGE	NAME	VOLUME / MO	CONV. %
01	Lead Generation	50	—
02	Qualified Prospects	40	80%
03	Sample Production	30	75%
04	Trial Paid Order	12	40%
05	Contract Signed	6	50%
06	Repeat Order	4	67%
07	Reference Sale	2	50%
END-TO-END CONVERSION		6/50	12.0%

FUNNEL VISUALIZATION

Unit Economics & Margin Architecture

Peak Revenue ৳1,523,200/mo · COGS 35.7% · Gross Margin 64.3% · Peak EBIT ৳381,288 (25.0%) · Insurance ৳29K/mo

At 85% of theoretical-max utilization (= 544M stitches/mo · Month 6+ steady-state), Auraq delivers ৳381,288 monthly EBIT on ৳1,523,200 revenue — a 25.0% EBIT margin after full payroll (17 staff including Fashion Designer + Content Creator), depreciation, insurance, and operational overhead. [Note: "85% utilization" = 85% × 741.3M theoretical max = 630M target; financial model uses conservative 544M = 73.4% of theoretical / 87.4% of post-downtime effective capacity. See Slide 07 for full derivation.] Electricity/diesel are direct COGS — Cash OPEX = Payroll ৳254.5K + Rent ৳45K + Admin ৳38.5K = ৳338K. EBIT ৳381,288 (25.0%).

① REVENUE

100%

৳1,523,200/mo
(85% of theor. max · 544M stitches)

② CONTRIB. MARGIN

49.1%

After Dep+Maint
(Pre-OPEX Contribution)

③ OPEX BURDEN

22.2%

৳338,000/mo
(Payroll+Rent+Admin only · excl. utilities)

④ EBIT MARGIN

25.0%

৳381,288/mo

Revenue / 1K stitches

৳2.80

85% of theor. max · 544M stitches/mo

✦ Gross Profit — Peak Monthly

৳979,728

64.3% Gross Margin Revenue ৳1,523,200 − COGS ৳543,472

GP 64.3% COGS 35.7%

COGS / 1K stitches

৳0.998

Bottom-up · 9-component tree

→ EBIT after OPEX:

৳381,288 (25.0%)

📐 EBITDA Footnote: Box ② represents Contribution Margin After Depreciation & Maintenance, not EBITDA. True EBITDA = EBIT + Depreciation = ৳381,288 + ৳207,000 = ৳588,288/mo (38.6% of revenue at 85% utilization · 544M stitches). Insurance of ৳29,000/mo is deducted below OPEX line (annualised ৳350K–৳420K policy, lower bound).

P&L LINE ITEM	PEAK MONTHLY (৳)	% OF REVENUE
Revenue (544M stitches × ৳2.80/1K)	1,523,200	100.0%
(–) Direct Variable COGS (544M × ৳0.998/1K)	(543,472)	(35.7%)
= Gross Profit	979,728	64.3%
(–) Depreciation (5-yr SL, monthly)	(207,000)	(13.6%)
(–) Maintenance Reserve (Accrual)	(25,000)	(1.6%)
= Contrib. Margin (Pre-OPEX)	747,728	49.1%
(–) Total Cash OPEX (Payroll ৳254.5K + Rent ৳45K + Admin/Comms/Logistics ৳38.5K)	(338,000)	(22.2%)
(–) Insurance Premium (Sadharan Bima + Pragati · ৳350K–৳420K/yr)	(29,000)	(1.9%)
= EBIT (Operating Profit)	381,288	25.0%
+ Depreciation (added back for EBITDA)	+207,000	13.6%
= EBITDA	588,288	38.6%

Unit Economics — CAC · LTV · Tier Profitability · Operating Leverage

CAC ৳6,700 (Full-Cost) · Direct CAC ৳2,100 · LTV:CAC 135× (full-cost) / 432× (direct) · ROIC 23.6% · Payback <1 Month · Tier 3 GCC EBIT 67.7%

📐 CLIENT ECONOMICS — CAC · LTV · PAYBACK · ROIC 

CAC / Client (Full-Cost)

৳6,700

Direct cash: Samples ৳800 + Transport ৳300 + Content alloc. ৳500 = ৳1,600
Founder time (M7+): ৳35K salary × 30% sales time ÷ 3 clients/mo = ৳3,500
Failed-pitch cost: 2:1 conversion → 1 failed pitch × (৳800 samples + ৳300 transport) = ৳1,100
Direct-only CAC = ৳2,100 · Full-cost (all-in) = ৳6,700

LTV / Client (3yr)

৳907,200

9M stitches/mo × ৳2.80/1K × 36 months = ৳907,200 revenue-LTV · EBIT-LTV = ৳226,800 (25.0% × ৳907,200) [9M assumption = conservative floor — smaller than smallest confirmed client (~10M stitches/mo) and well below anchor client (30M+). Represents a typical small boutique with 200 garments/mo × 45K stitches/garment = 9M. Used to give a downside-conservative LTV — actual avg client likely 15–20M+.]

LTV : CAC

135×

৳907,200 ÷ ৳6,700 = 135× (full-cost basis).
B2B benchmark: >3×. Even at full-cost 135×, AURAQ remains 45× above industry threshold.
Direct-only basis: ৳907,200 ÷ ৳2,100 = 432×

Payback Period

<1 month

Full-cost CAC ৳6,700 vs. Month-1 client revenue ৳25,200 (9M × ৳2.80/1K). Recovered in ~8 days — even on conservative full-cost basis. Capital-light acquisition model intact.

ROIC (Year 2)

23.6%

Y2 EBIT ৳4.25M ÷ Invested Capital ৳18M = 23.6%. Exceeds BD RMG avg 12–16%. Manual ops: <8%. ⚠ Y2 EBIT RECONCILIATION: Three Y2 EBIT figures appear in this document — (1) ROIC slide: ৳4.25M (Model A BD-domestic revenue ৳20.45M, cash OPEX ৳8.7M including dep — rounded); (2) Slide 21 waterfall: ৳4,459,749 (same Model A revenue, same OPEX structure — slight rounding difference); (3) Quarterly bridge Slide 20: ৳2,988K (post-dep EBIT on Model B ৳21.05M revenue, dep shown separately = EBITDA ৳5,472K − dep ৳2,484K). Figures (1) and (2) are the same model on the same revenue base. Figure (3) is a different model (B, deprecated) with depreciation split out. Canonical: figure (2) = ৳4,459K from Slide 21.

CONTRIBUTION MARGIN BY TIER — EBIT CONTRIBUTION PER 1,000 STITCHES

Tier	Rate/1K	COGS/1K	Gross Margin	OPEX Alloc/1K	EBIT/1K	EBIT %
Tier 1 (Boutique)	৳2.80	(৳0.998)	৳1.802 · 64.4%	(৳1.10)	৳0.702	25.1%
Tier 2 (RMG/Bridal)	৳3.20–৳4.20	(৳0.998)	৳2.20–৳3.20 · 69–76%	(৳1.10)	৳1.10–৳2.10	34–50%
Tier 3 (GCC Export)	৳6.50	(৳0.998)	৳5.502 · 84.6%	(৳1.10)	৳4.402	67.7%
D2C Own-Brand AURAQ Signature · Age 10–60 · Modest fashion revolution · BD's most premium homegrown label	৳4.50–৳5.50	(৳0.998)	৳3.50–৳4.50 · 78–82%	(৳1.10)	৳2.40–৳3.40	53–62%

OPEX alloc/1K = ৳675,000 ÷ 520M avg stitches = ৳1.30/1K. Fixed cost base does NOT increase with tier mix shift → GCC and D2C orders deliver 4–6× the EBIT of Tier 1 on identical machine time. Mix shift from Tier 1→Tier 3 is the primary EBIT margin lever in Y3–Y4.

OPERATING LEVERAGE — EBIT MARGIN VS. UTILIZATION

Utilization	Monthly EBIT	EBIT Margin	Key Milestone
30% (M1)	(৳73K)	-14%	Commissioning phase · EBITDA already +৳134K (M1 cash-positive · utility in COGS only)
52% (EBIT BE)	৳0	0%	Steady-state EBIT BE: 332M ÷ 640M = 52%. [640M = operational capacity base defined as: peak model stitches (544M) ÷ 85% utilization target = 640M. This is the implicit baseline from which util% is expressed in this waterfall; not the same as theoretical max (741.3M) or effective capacity (622.7M). See Slide 07 footnote.] EBITDA+ from M1 · In volatility scenario: EBIT+ at M3 (52% util). Base quarterly model: EBIT+ at M4
62% (M4)	৳116K	10.4%	Well above EBIT break-even · M3 was already ৳24K EBIT positive
85% (Peak)	৳381K	25.0%	Steady-state · M6 onwards · 544M stitches · EBITDA ৳588K (38.6%)
85% + Tier 3 mix	৳785K+	40%+	Y3 GCC mix shift · same machines · 6.3× EBIT/stitch vs Tier 1

Cash Conversion Cycle: Receivables: 14–21 days. Payables: 30 days. Inventory: 7 days. Net CCC ≈ 0 days — AURAQ collects before paying suppliers at steady-state from M3.
Operating Leverage: Fixed OPEX (৳599K/mo) does NOT grow with tier-mix upgrade. GCC stitch delivers ৳4.40 EBIT vs ৳0.70 Tier 1 — 6.3× EBIT uplift on same machine time.

EBIT MARGIN VS. UTILIZATION — OPERATING LEVERAGE CURVE

EBIT / 1K STITCHES BY TIER

Cost Tree & Bottom-Up COGS Architecture

৳0.998 Direct COGS / 1,000 Stitches · Bottom-Up Validated · 64.3% Gross Margin · 9-Component Tree · Utility Classification Corrected

Auraq's ৳0.998 direct variable COGS per 1,000 stitches is built from a granular bottom-up cost tree validated against supplier quotations. Every input is sourced and quantified — no aggregated estimates.

COGS COMPONENT	৳/1K	% COGS	SOURCING / RATIONALE
Thread (Polyester/Rayon)	৳0.180	18.0%	FUJIX/Olympus 5000m cones · ~1,944K stitches/cone
Beads / Sequins	৳0.210	21.0%	Miyuki/TOHO · 30% designs use beadwork weighted
Backing Fabric / Stabilizer	৳0.060	6.0%	Tear-away/cut-away · ৳60/yard · industry standard
Needles (Wear)	৳0.030	3.0%	Titanium-coated · 50K stitches/needle · ৳150/needle
Bobbin Thread	৳0.040	4.0%	Pre-wound bobbins · 30M stitches/case
Direct Operator Labor	৳0.180	18.0%	Allocated payroll over 544M peak stitches
Electricity (Grid)	৳0.129	12.9%	৳70K/mo grid ÷ 544M × 1,000 = ৳0.129 (verified against OPEX electricity line)
Diesel Fuel (Generator)	৳0.064	6.4%	৳35K/mo diesel ÷ 544M × 1,000 = ৳0.064
Allocated Overhead	৳0.105	10.5%	Per-unit allocation of non-utility, non-labor monthly OPEX excl. dep. (direct variable cost of machine operation per stitch)
TOTAL COGS	৳0.998	100.0%	35.7% of ৳2.80 = 64.3% Gross Margin · 0.180+0.210+0.060+0.030+0.040+0.180+0.129+0.064+0.105 = ৳0.998

📐 Methodology — COGS vs OPEX Classification: Electricity (৳0.129/1K) and Diesel (৳0.064/1K) are COGS components — direct variable costs tied to machine runtime per stitch. The Allocated Overhead (৳0.105/1K) captures non-variable admin overhead per unit. Cash OPEX = ৳338,000/mo (Payroll ৳254.5K + Rent ৳45K + Admin/Comms/Logistics ৳38.5K — utilities in COGS only, not OPEX). EBIT = ৳381,288 (25.0%) on this basis. Rent ৳45K in OPEX; electricity & diesel in COGS throughout.

64.3% IS A TRUE GROSS MARGIN — NOT MERELY CONTRIBUTION MARGIN

COGS at ৳0.998/1K explicitly includes: Direct Operator Labour (৳0.180/1K · 18.0% of COGS) + Electricity/Grid (৳0.129/1K) + Diesel (৳0.064/1K) + all material inputs. Gross Margin = Revenue − (Materials + Direct Labour + Direct Energy). Contribution Margin (pre-OPEX) is separately stated at 49.1% (Slide 16), after deducting depreciation and maintenance reserve from Gross Profit. The 64.3% figure is correctly classified as Gross Margin under standard manufacturing accounting.

COST COMPOSITION BREAKDOWN

COGS / 1K Stitches

৳0.998

9-component bottom-up validated
= 35.7% of ৳2.80 revenue

Gross Margin

64.3%

৳2.80 − ৳0.998 = ৳1.802 GP/1K
Incl. direct labour + energy

COGS COMPONENT DEEP-DIVE — ৳/1K · % Share · Monthly Cost at Peak · Margin Bridge

Largest Cost

Beads &
Sequins

৳0.210/1K · 21.0%

Materials Total

৳0.520/1K

Thread + Beads
+ Backing + Bobbin
+ Needles

Energy Total

৳0.193/1K

Grid ৳0.129
+ Diesel ৳0.064

Labor + Overhead

৳0.285/1K

Labor ৳0.180
+ Overhead ৳0.105

Gross Profit / 1K

৳1.802

৳2.80 − ৳0.998
= 64.3% GM

Realistic Monthly Utilization Ramp — With Volatility Modeling

Smoothed Trend Hides Reality · Below: Slow Months & Surge Months · EBITDA+ M3 · Acctg BE M4 · Accounting BE M4–5

Investor concern: "Why is your ramp so smooth?" The smoothed trajectory is the average; reality includes order volatility, client onboarding lumps, and seasonal shocks. Below shows the realistic utilization band including slow-month (M2 dip) and surge-month (M5 surge) volatility.

MONTH	UTIL % base = 640M (= 544M÷85%) See Slide 07	STITCHES (M)	REVENUE	VARIABLE COGS (৳0.998/1K)	GP	OPEX (incl. ৳29K ins.)	EBIT VOLATILITY MODEL (not base quarterly)	NOTE
Pre-M1 (SLA Bridge)	Trading only no own machines	—	~৳150,000–৳300,000	(COGS = subcontractor cost; margin ~15–25%)	৳30K–৳60K est.	(payroll only; no rent/machine cost)	~৳20K–৳50K	M1–M3.5 SLA system: AURAQ takes orders from boutique clients → sub-contracts to 3rd-party manufacturers → earns ~15–25% coordination margin. Revenue not included in Y1 ARR (treated as pre-production bridge income). Builds client pipeline + generates early cash flow.
M1	30% eff.	~192M	537,600	(191,616)	345,984	(419,000)	(73,016)	Commissioning losses · electricity/diesel in COGS
M2 (slow)	30–32%	205M	573,400	(204,590)	368,810	(464,000)	(95,190)	L/C delay · network warming
M3 (EBIT+)	52%	333M	931,200	(332,334)	598,866	(574,500)	24,366	First EBIT-positive month (volatility model, 52% util) · EBITDA ৳231K
M4	62%	397M	1,111,600	(396,406)	715,194	(599,000)	116,194	Solidly EBIT-positive · 10.5% margin
M5 (surge)	82%	525M	1,470,000	(524,550)	945,450	(572,000)	373,450	Eid order surge · 25.4% margin
M6 (Peak)	85%	544M	1,523,200	(543,472)	979,728	(599,000)	381,288	Steady state · EBITDA ৳588,288 (38.6%)
M7	78%	500M	1,400,000	(499,000)	901,000	(634,000)	267,000	Post-Eid dip · Founder salary ৳35K activates M7 · OPEX=৳599K+৳35K salary=৳634K
M8	83%	531M	1,486,800	(529,938)	956,862	(634,000)	322,862	Recovery · 21.7% EBIT margin

      ✦ VOLATILITY ACKNOWLEDGED · BREAK-EVEN PRESERVED
      M2 slow scenario: 32% util · EBIT –৳280K — within ৳3.5M WC buffer.
M3 (this volatility model, 52% util): EBIT +৳24,366 (2.6%) · EBITDA +৳231K. Note: In the standard quarterly base model (monthly waterfall slide), M3 EBIT = –৳80,634 due to lower utilization assumption; EBIT breakeven occurs at M4. Both figures are internally consistent within their respective models.
M5 surge scenario: 82% util pulled forward by Eid demand · ৳373K EBIT (25.4% margin).
M6 Peak: ৳588,288 EBITDA (38.6%) · ৳381,288 EBIT (25.0%) · 85% steady state.
M7+ Note: Founder salary ৳35,000/mo activates from M7 (SHA-locked; cap ৳60K/mo). M7 EBIT ৳267K · M8 EBIT ৳323K — both comfortably positive.
Annual total preserved: Volatility-modeled Y1 ARR = ৳15.04M · EBIT ৳2.38M (15.8% margin) · Net after royalty ৳2.09M (13.9%).

    

Year 1 Financial Projection & Quarterly P&L

Y1 ARR ৳15.04M · Y1 EBIT ৳2.38M (15.8%) · 64.36% GM · Q1 Investment Phase → Q4 Steady-State Profitability

📅 2026 CALENDAR CONTEXT: Investment close: May–June 2026. Machine arrival + production activation: ~September 2026 (3.5 months minimum). AURAQ therefore operates in Q3–Q4 of calendar year 2026 only. "Year 1" below = first 12 operational months (M1–M12 from investment close), spanning Q3 2026 → Q2 2027. Year 2 = Q3 2027 → Q2 2028. Year 3 = 2028–29. Year 4 exit = 2029–30. The ৳15.04M ARR reflects full 12-month ramp — calendar 2026 actual revenue will be lower (SLA bridge phase + ramp-up only).

P&L LINE	Q1 (M1–M3)	Q2 (M4–M6)	Q3 (M7–M9)	Q4 (M10–M12)	YEAR 1 TOTAL
Revenue	2,096,000	4,104,800	4,432,800	4,409,600	15,043,200
(–) Variable COGS (35.64% · ৳0.998/1K stitches · 64.36% GM)	(747,074)	(1,463,068)	(1,579,977)	(1,571,707)	(5,361,826)
Gross Profit (64.36%)	1,348,926	2,641,732	2,852,823	2,837,893	9,681,374
(–) Total OPEX	(1,610,000)	(1,938,000)	(2,025,000)	(1,725,000)	(7,298,000)
EBIT	(261,074)	703,732	827,823	1,112,893	2,383,374
(–) Royalty [5% Gross Revenue · Grace M1–M8 · M9 only in Q3 · Full Q4]	—	—	(73,880)	(220,480)	(294,360)
NET (After Royalty)	(261,074)	703,732	753,943	892,413	2,089,014
+ Depreciation Add-Back	+621,000	+621,000	+621,000	+621,000	+2,484,000
Y1 EBITDA	359,926	1,324,732	1,448,823	1,733,893	4,867,374

✦ Y1 KEY OUTCOMES (64.36% GM · Electricity & Diesel in COGS)

Y1 NET (After Royalty): ৳2,089,014 — primary investor headline figure (13.9% net margin). COGS rate ৳0.998/1K stitches = 35.64% = 64.36% GM. Electricity & diesel classified as COGS (Option B) throughout all slides.
Y1 EBIT (Pre-Royalty): ৳2,383,374 (15.8% of revenue). Royalty ৳294,360 = investor's direct Y1 cash return (5% × Gross Revenue, M9 onwards).
Y1 EBITDA: ৳4,867,374 (32.4% of revenue). EBITDA = EBIT + Dep (৳2,484K/yr).
Q1 EBIT (–৳261,074) fully absorbed by ৳3.5M WC buffer. M4 first EBIT-positive month.
Q2–Q4 all cash-flow strongly positive after royalty.

COGS methodology: Electricity/diesel (৳0.193/1K) classified as direct COGS only. OPEX = cash operating costs only (Payroll + Rent + Admin). GM = 64.36% throughout. COGS rate = exact 35.64% (৳0.998÷৳2.80).

6-Month Cash Flow — Granular Operational Detail

Month-by-Month Cash Position · Working Capital Drawdown · Operational Inflection

METRIC	M1	M2	M3	M4	M5	M6
Util %	30%	32%	52%	62%	82%	85%
Revenue	537,600	573,400	931,200	1,111,600	1,470,000	1,523,200
(–) Variable COGS ৳0.998/1K · 35.64% · 64.36% GM	(191,616)	(204,376)	(331,906)	(396,206)	(523,950)	(542,912)
Gross Profit (64.36%)	345,984	369,024	599,294	715,394	946,050	980,288
(–) Payroll	(204,000)	(220,000)	(240,000)	(254,500)	(254,500)	(254,500)
(–) Rent [electricity & diesel classified as direct COGS]	(45,000)	(45,000)	(45,000)	(45,000)	(45,000)	(45,000)
(–) Other OPEX	(38,500)	(38,500)	(38,500)	(38,500)	(38,500)	(38,500)
(–) Insurance	(29,000)	(29,000)	(29,000)	(29,000)	(29,000)	(29,000)
(–) Maintenance Reserve	(25,000)	(25,000)	(25,000)	(25,000)	(25,000)	(25,000)
EBITDA (Cash Profit)	4,484	11,524	221,794	323,394	554,050	588,288
(–) Depreciation	(207,000)	(207,000)	(207,000)	(207,000)	(207,000)	(207,000)
EBIT	(202,516)	(195,476)	14,794	116,394	347,050	381,288
WC Drawdown (Cum.)	30,484	(11,368)	114,998	333,192	781,642	1,264,370

      📊 CASH FLOW INTERPRETATION (Electricity & Diesel → direct COGS · Rent ৳45K/mo in OPEX)
      M1: EBIT –৳202,516 · EBITDA +৳4,484. Full payroll (৳204K) + Rent (৳45K) applied from Day 1. WC buffer (৳3.5M) fully covers early negative EBIT months.
M2: Utilization 32% (৳573,400 revenue). EBIT –৳195,476. Shallower loss vs prior model — utilities correctly in COGS only. Still <6% of WC buffer.
M3: First EBIT-positive month (EBIT +৳14,794) — breakeven accelerated vs prior model (was M4) due to Option B reclassification.
M6: EBIT ৳381,288 (25.0% margin) · EBITDA ৳588,288 (38.6%). Electricity/diesel in COGS. GM = 64.3% throughout.

    

📆 Y2–Y4 QUARTERLY CASH FLOW BRIDGE — SCALED FINANCIALS

Quarter	Revenue	Gross Profit 64.3% blended (conservative — GCC real GM = 84.6% at ৳6.50/1K; blending understates GCC contribution)	OPEX Cash only (excl. dep) — Slide 21 uses cash+dep in some rows; see reconciliation note below	EBITDA	Dep.	EBIT	SME Interest	Royalty (5%)	Net Cash
Y2 Q1	৳4,512K	৳2,901K	(৳2,016K)	৳885K	(৳621K)	৳264K	—	(৳226K)	৳38K
Y2 Q2 (GCC ramp)	৳5,712K	৳3,673K	(৳2,016K)	৳1,657K	(৳621K)	৳1,036K	—	(৳286K)	৳750K
Y2 Q3	৳4,912K	৳3,158K	(৳2,016K)	৳1,142K	(৳621K)	৳521K	—	(৳246K)	৳275K
Y2 Q4 (Eid)	৳5,916K	৳3,804K	(৳2,016K)	৳1,788K	(৳621K)	৳1,167K	—	(৳296K)	৳871K
Y2 TOTAL [⚠ Model B basis — DEPRECATED. Canonical Y2: Model A ৳20.45M (conservative) or Model C ৳22.85M (target). See guidance note below.]	৳21,052K	৳13,536K	(৳8,064K)	৳5,472K	(৳2,484K)	৳2,988K	—	(৳1,053K)	৳1,935K
Y3 TOTAL	৳35,260K	৳22,672K	(৳8,400K)	৳14,272K	(৳2,484K)	৳11,788K	(৳1,500K) 10%×৳15M	(৳1,763K)	৳8,525K
Y4 TOTAL (exit yr) ⚠ ৳60M = +70.1% vs Y3 ৳35.26M. Basis: 16 machines × ~৳3.75M/machine/yr at ~82% Phase 2 utilization. BD segment: ~৳35M · GCC: ~৳25M. Y4 quarterly bridge by BD/GCC/Tier available on request.	৳60,000K	৳38,580K	(৳9,200K)	৳29,380K	(৳2,484K)	৳26,896K	(৳1,500K) 10%×৳15M	(৳3,000K)	৳22,396K

Y2 OPEX includes Phase 2 rent ramp (৳150K→৳200K/mo from Q3). Y3/Y4 OPEX includes Phase 2 payroll expansion (+8 staff). ⚠ OPEX DEFINITION NOTE: This bridge OPEX = cash operating costs only (excludes depreciation ৳2,484K/yr — dep shown separately). Slide 21 waterfall OPEX in some rows includes depreciation within the OPEX line. This slide's OPEX = cash-only throughout. Slide 21 OPEX rows also show dep separately. Always verify whether a quoted OPEX figure is cash-only or inclusive of dep before cross-referencing. Y3 OPEX CONFLICT: This bridge: ৳8,400K (partial Phase 2 staff ramp); Slide 21 waterfall: ৳10,200K (full Phase 2 headcount from Y3 Q1). Gap = ৳1,800K. Canonical OPEX: Slide 21 (conservative, higher). Y3 EBIT in this bridge (৳11,788K) uses a higher revenue scope (BD+GCC ৳35.26M) vs. Slide 21 (BD-domestic ৳26.78M) — so direct EBIT comparison across slides is not apple-to-apple. Within the same revenue scope, the OPEX gap of ৳1,800K (৳10,200K canonical − ৳8,400K bridge) causes EBIT to overstate by ৳1,800K vs. canonical Slide 21 OPEX assumption (not ৳684K — prior version contained an arithmetic error). Corrected Y3 EBIT on bridge revenue using canonical OPEX = ৳11,788K − ৳1,800K = ৳9,988K. Slide 21 figure is the conservative anchor. All EBIT sensitivity uses Slide 21 OPEX. SME Interest (Y3+): ৳1,500K/yr = 10% × ৳15M SME bank loan (Phase 2 machinery financing, base-rate assumption). ⚠ SME INTEREST SENSITIVITY: Model uses mid-rate ৳15M × 10% = ৳1.5M. Disclosed range is ৳15–20M at 9–12%. Midpoint = ৳17.5M × 10.5% = ৳1,838K/yr — model understates interest by ~৳338K/yr on midpoint basis. Stress case: ৳20M × 12% = ৳2.4M/yr → Y4 Net Cash = ৳22.396M − ৳900K incremental = ৳21.5M. Midpoint stress: ৳1.8M/yr is the conservative anchor. Collateral: machinery book value ~৳7.45M at Y2 vs ৳15M loan — personal guarantees likely required. Net Cash = EBIT − SME Interest − Royalty. Y4 Net Cash ৳22.4M (base) / ৳21.5M (midpoint stress). Y4 EBITDA margin: 49% (unchanged — EBITDA is pre-interest). ⚠ ARR Scope Note: This bridge uses Phase 2 expanded revenue (15–16 machines post M18): Y2=৳21.05M, Y3=৳35.26M. Roadmap slide ARR (Y2=৳20.45M, Y3=৳26.78M) = Phase 1 Model A four-machine baseline only. The royalty waterfall (Slide 21) uses Phase 2 expanded revenue; all royalty arithmetic is internally consistent within its own scope.

📐 FINANCIAL CROSS-CHECK — Y2 REVENUE SCOPE RECONCILIATION (3 MODELS)

Model A — Phase 1 Baseline (4 machines)

[Model A — Phase 1 Conservative Floor] Y2 ARR = ৳20.45M. 4-machine baseline. Used for roadmap timeline validation and conservative MOIC floor (2.26×).

Model B — Phase 2 Expanded ⚠ DEPRECATED

Y2 ARR = ৳21.05M. 15–16 machines + GCC ramp from M13. Used in quarterly cash flow bridge (this slide). Royalty Y2 = ৳1.053M on this base (= 5% × ৳21.05M).

Model C — Phase 2+GCC (Royalty Waterfall)

Y2 total = ৳22.85M (BD ৳20.45M + GCC ৳2.4M). Used for Slide 21 royalty calc. Royalty Y2 = ৳1.142M. Most aggressive scope — requires GCC activation by M13.

📌 CANONICAL MODEL GUIDANCE — TWO MODELS ONLY: Two canonical models: Model A (conservative, Phase 1 only — anchor for underwriting) and Model C (base case plan — Phase 2 + GCC, drives 3.01× MOIC). Model B is a deprecated computational intermediate — use Model A or Model C only. Anchor: Model A (৳20.45M Y2) as conservative floor; Model C (৳22.85M Y2) as target. Model B and C represent conditional upside scenarios requiring Phase 2 execution and GCC activation respectively. The primary MOIC of 3.01× uses Y4 ৳60M (Model C scale at Y4) — achievable only with Phase 2 + GCC fully executed. Conservative MOIC at Model A scale = 2.26× (৳45M Y4 revenue · ৳144M exit) — still investor-positive at ~23% IRR. Models B/C are sensitivity scenarios, not base case promises.

Monthly Cash Flow Waterfall — Months 1 to 36

Full Revenue · COGS · EBIT · Royalty Cascade | Royalty 0% M1–M8 → 5% M9+ | Stop @ ৳21.6M Royalty Cap

Y1 Total Royalty

৳294,360

M9 + full Q4 · 1.36% of ৳21.6M cap

Y2 Total Royalty

৳1,142,400

12 months · Phase 2 expanded ARR ~৳22.85M

Y3 Cumulative

৳3,200,000

14.8% of ৳21.6M cap

QUARTER	REVENUE	COGS	GP	OPEX	EBIT	ROYALTY	NET	CUM. ROY.
Q1	2,096,000	747,074	1,348,926	1,610,000	(261,074)	—	(261,074)	0
Q2	4,104,800	1,463,068	2,641,732	1,938,000	703,732	—	703,732	0
Q3	4,432,800	1,579,977	2,852,823	2,025,000	827,823	73,880	753,943	73,880
Q4 ★ OPEX lower than Q3: Q4 Eid surge runs on fully-trained staff (no onboarding/training cost); annual insurance & maintenance reserves settled in Q3; admin overhead lower in production-heavy Eid sprint. Review recommended.	4,409,600	1,571,707	2,837,893	1,725,000	1,112,893	220,480 5% × ৳4,409,600	892,413	294,360
YEAR 1 TOTAL [Model A · Phase 1 Baseline · BD-domestic only]	15,043,200	5,361,826	9,681,374	7,298,000	2,383,374	294,360	2,089,014	294,360
Year 2	20,448,000 +৳2,400,000 GCC Phase 2	7,288,251	13,159,749	8,700,000	4,459,749	1,142,400 5% × ৳22.85M (BD+GCC). Note: Quarterly bridge slide uses Model B royalty ৳1,053K on ৳21.05M — ৳89K scope diff explained in bridge reconciliation box.	3,317,349	1,436,760
Year 3 ⚠ SCOPE NOTE: EBIT = BD-domestic revenue base (৳26.78M). Royalty = 5% × total BD+GCC (৳35.26M). NET here is NOT a consolidated P&L — use Slide 20 bridge for consolidated Y3 Net Cash (৳8,525K).	26,784,000 +৳8,481,000 GCC Phase 2	9,546,583	17,237,417	10,200,000	7,037,417	1,763,240 5% × ৳35.26M total	5,274,177	3,200,000
3-YR CUMULATIVE ⚠ Revenue = BD-domestic only (Phase 1 basis). Royalty computed on total incl. GCC (Y2 ৳22.85M; Y3 ৳35.26M). Full revenue incl. GCC = ৳73.15M — see Slide 20 bridge.	৳62.3M	22,196,660	৳40.1M	26,198,000	৳13.88M	৳3.2M	৳10.68M	3,200,000

📊 ROYALTY CAP TRAJECTORY & TIMELINE

By end of Year 3: 14.8% of ৳21.6M royalty cap repaid. ⚠ IMPORTANT DISCLOSURE: Y2 royalty (৳1,142,400) and Y3 royalty (৳1,763,240) are calculated on total blended revenue including GCC Phase 2 export streams not fully shown in the BD-domestic ARR figures (Y2 total incl. GCC ≈ ৳22.85M; Y3 total incl. GCC ≈ ৳35.26M). At this trajectory, realistic cap completion: M72–M84 (base case) — Phase 2 + Phase 3 GCC revenue acceleration required to materially shorten this timeline. Aggressive case (full GCC + D2C Phase 3): M54–M66. At the Y4 M&A exit (before cap reached), investor retains 25% equity stake — increasing exit proceeds to 25% × exit value, which substantially improves MOIC (see investor returns slide).

ROYALTY CAP COMPLETION — 3-SCENARIO TIMELINE

SCENARIO	CONDITION	Peak Annual Royalty	Cap at Y4 Exit (M48)	Estimated Completion	Investor Position at Y4 Exit
Bear BD domestic only	GCC never activates · D2C minimal · 4 machines only	~৳775K/yr (5%×৳15.5M — BD domestic only; GCC not activated in this scenario)	~৳2.7M / ৳21.6M 13% of cap	M96–M108 8–9 years	Investor retains full 25% equity — value grows as AURAQ scales toward global brand. Royalty as running cash stream. SHA-protected exit mechanisms (secondary sale, MBO, drag-along) provide liquidity independent of M&A timing.
Base Phase 2 + partial GCC	GCC activates M15 · 2 buyers · 15–16 machines · D2C minimal	~৳2.9M/yr (5%×৳58M Y4 ARR)	~৳6.2M / ৳21.6M 29% of cap	M72–M84 6–7 years	Retains 25% equity at Y4 exit → 25%×৳192M = ৳48M + ৳6.2M royalties = ৳54.2M · MOIC ~3.01×. Cap completes post-exit.
Bull Full Phase 2+3	GCC M13 · 3+ buyers · D2C Y3 live · ৳8M D2C revenue	~৳5.7M/yr (5%×৳114M run-rate)	~৳14.2M / ৳21.6M 66% of cap	M54–M66 4.5–5.5 years	Cap nears completion pre-exit. At exit: investor collects remaining cap balance + exercises residual 5% equity in a larger business. Higher cash returns throughout.

Key Investor Takeaway: In ALL three scenarios, investor exit is SHA-protected through secondary sale right (M48+), MBO floor ৳36M, and drag-along at ৳150M — independent of AURAQ's brand journey. Royalty is a running cash stream — not the terminal return. Equity stake grows in value as AURAQ scales toward a global brand. M&A remains one available exit pathway, not the company's strategic terminus.

Best Case · Base Case · Worst Case Scenario Analysis

Triple-Scenario P&L · 3-Year Trajectory · Investor MOIC Outcome · Stress-Tested Resilience

Auraq's financial model is stress-tested across three scenarios spanning the realistic outcome distribution. Every scenario preserves the ৳21.6M royalty cap mechanism — only timing and exit valuation vary.

⚠ WORST CASE

Pricing pressure + slow ramp + USD spike

Y1 ARR	৳11.79M
Y2 ARR	৳15.5M
Y3 ARR	৳20.0M
Y1 EBIT	৳540K
Cash BE	M5–6
Royalty Start	M14
Cap Reached	M60
Y4 Exit Val	৳120M
Equity at Exit	25% (cap not hit)
Return	৳38.5M SHA floor: ৳36M+৳2.5M
MOIC	~2.14× SHA-protected ↑ from 1.81×
IRR	~21%

◆ BASE CASE

Day-0 pipeline executes as planned

Y1 ARR	৳15.04M
Y2 ARR	৳20.45M
Y3 ARR	৳26.78M
Y1 EBIT	৳2.38M
EBITDA BE / EBIT BE	M3 / M4
Royalty Start	M9
Cap Reached	M72–84
Y4 Exit Equity	25% (pre-cap)
Y4 Exit Val	৳192M
Return	৳54.2M
MOIC	~3.01× (Model C · Phase 2+GCC) Conservative: ~2.26× Model A
IRR	~31%

★ BEST CASE

GCC ramp pulled forward · Tier 2 surge

Y1 ARR	৳17.85M
Y2 ARR	৳28.5M
Y3 ARR	৳42.0M
Y1 EBIT	৳3.85M
Cash BE	M2
Royalty Start	M9
Cap Reached	M54–66
Y4 Exit Val	৳280M
Equity at Exit	25% (cap not hit)
Return	৳78.5M
MOIC	~4.36×
IRR	~38%

SCENARIO ASSUMPTION DRIVERS

DRIVER	⚠ WORST	◆ BASE	★ BEST
Util Ramp	25% → 70% by M9	30% → 85% by M6	40% → 90% by M5
Blended Rate	৳2.55/1K (-9%)	৳2.80/1K	৳3.05/1K (+9%, Tier 2 mix)
Phase 2 Export	Delayed M18	Activates M13–M15	Pulled forward to M10
USD/BDT	+5–8% spike	Stable (~৳110)	Stable to favorable
Client Concentration	Top client L/C delay 90d	25% cap from M4	Multiple GCC anchors
Defect Rate	1.5% (rework)	0.5%	0.3%
Y4 Exit Multiple	3.0× ARR	3.2× ARR	3.5×–4.0× ARR

RETURN PROFILE · GROWTH TRAJECTORY

Revenue & EBIT Trajectory — Month 1 → Year 4

Ramp-up Phase · Phase 1 Steady State · Phase 2 Scale · Phase 3 D2C · All-time growth in BDT

M1 Revenue

৳3.8M

30% util · ramp start

Y1 ARR

৳15.04M

Phase 1 · 4.79× multiple

Y2 Revenue

৳22.85M

Model C · +52% YoY

Y3 Revenue

৳35.26M

Phase 2 + GCC · +54% YoY

Y4 Revenue

৳60M

Full scale · M&A exit

AURAQ · BDT

৳60,000,000 +297.3% All Time

MONTHLY REVENUE · M1 → M48

3M 6M Y1 Y2 Y3 ALL

◀ Phase 1 · Ramp (M1–M12) ▶

◀ Phase 2 · GCC Scale (M13–M36) ▶

◀ Phase 3 · D2C + Exit ▶

📈 REVENUE MILESTONES

M1: ৳458K (30% util) · M6: ৳1.52M (peak Phase 1) · M12: ৳1.52M steady state · M18: Phase 2 machines online → M24: ৳2.94M/mo (Phase 2 full util) · M36: ৳2.94M/mo · M48: ৳5M/mo (D2C + GCC peak) → M&A Exit ৳192M+

💹 EBIT TRAJECTORY (ANNUAL)

Y1: ৳2.07M EBIT · Y2: ৳4.46M (24.8% margin) · Y3: ৳9.99M (28.3%) · Y4: ৳22.4M (37.3%) · CAGR Revenue: ~59% Y1→Y4 · EBIT CAGR: ~120% Y1→Y4 · Margin expansion from 13.8% → 37.3%

Interconnected Risk Stress Test & Cash Flow Survival Analysis

Combined-Risk Scenarios · Multi-Variable Shock Analysis · Months-of-Survival Quantification

Investor concern: "What happens if two risks occur simultaneously?" Real risks are interconnected: USD↑ → input cost↑ · Electricity↑ → margin↓ · Labour shortage → util↓. Below is the combined-risk matrix.

COMBINED SHOCK SCENARIO	Y1 ARR IMPACT	Y1 EBIT	CASH RUNWAY	RECOVERY PATH
Base Case (no shock)	৳15.04M	৳2.38M	12+ months	Steady-state by M4
USD +5% & Electricity +10%	৳15.04M	৳1.85M	11 months	WC absorbs ৳350K shock; pricing pass-through M6+
USD +8% & Labour +12% wages	৳15.04M	৳1.55M	10 months	৳650K combined hit; recovered via Tier 2 mix shift
Price -5% & Util -10%	৳12.85M	৳950K	8 months	Royalty deferred to M11; export ramp accelerated
Top client 90-day L/C delay	৳15.04M (deferred)	৳2.20M	9 months	৳3.5M WC absorbs payment lag; receivables recover
Top client default (full)	৳12.5M	৳1.10M	7 months	25% concentration cap means max ৳3.8M loss; replaced M2–M3
Generator failure 30 days	৳13.8M	৳1.40M	9 months	৳600K backup rental cost · 25% capacity loss for 1 mo
Worst Combined: Price -10%, Vol -20%, USD +8%	৳10.85M	(৳620K)	5–6 months	Royalty grace extended; cap timeline pushes to M60
EXTREME: Above + key person loss	৳9.2M	(৳1.4M)	4 months	Operations Manual + N+1 protocol activates; recovery M5

      ✦ MONTHS-OF-SURVIVAL ANALYSIS — EVEN UNDER EXTREME STRESS
      ৳3.5M working capital buffer = 4–6 months full OPEX coverage at zero revenue (~৳675K/mo OPEX).
Even extreme combined shock (price↓, vol↓, USD↑, key person loss simultaneously) leaves 4 months runway — sufficient for recovery activation.
Royalty grace period (M1–M8) protects all stress scenarios from premature investor cash demands.
Royalty cap mechanism is hardware-anchored: ৳13.8M depreciable assets maintain liquidation floor across all scenarios.
Worst-case combined stress MOIC 1.53× — principal-plus-premium preserved under all modeled combined shocks (hold-to-cap path, investor does not exercise SHA secondary sale right). (Note: Triple-scenario standalone worst case = ~2.14× (SHA-adjusted) per Slide 22 — SHA secondary sale right (M48+) provides ৳36M equity floor, raising pre-SHA raw 1.81× to 2.14× effective floor.)

    

Critical Risk Analysis & Mitigation Architecture

Quantified Operational Risk · Mean Downtime Expectations · Spare Parts Lead Time · Mitigation Coverage

RISK VECTOR	SEVERITY	PROBABILITY	QUANTIFIED IMPACT	MITIGATION
Machine Breakdown	Medium	Medium	Mean downtime: 4hr/event; ~2 events/quarter; ~10hr/mo loss	4-machine redundancy · 5% buffer baked in · 24hr Guangzhou support
Spare Parts Lead	Medium	Medium	Local: 24–48hr · Guangzhou airfreight: 7 days · Sea: 25 days	On-site spare inventory: rotary hooks ×4, bobbin cases ×20, drive belts ×6, 200 needles
Skilled Operator Shortage	Medium	Medium	4-week onboarding per replacement · 20% util loss for 2 weeks	N+1 cross-training · WhatsApp backup roster (5–7 vetted) · 2hr deployment
IP / Design Theft	High	Low	Loss of competitive moat — quantitative damages ৳5M+	Dahao A18 encrypted push · zero-USB · per-operator access logs
Client Concentration	High	Medium	25% top-client dependency = max ৳3.8M Y1 revenue loss	25% single-client cap from M4 · 4-segment diversification · funnel velocity
Power Disruption	High	Medium	Grid outage Bangladesh: ~8–12 events/mo · 2–4hr each	30 KVA UPS (zero-ms) · 32 kW DG (8–10hr runtime) · 200L diesel reserve
Fire / Facility Risk	High	Low	Major event: ৳25M asset loss · Insurance covers	Multi-layer framework · ≥4 CO2 + ≥4 detectors · ৳25M insurance · BNBC
HR / Operator Loss	Medium	Medium	Unplanned exit: 2-week productivity gap per role	N+1 cross-training · backup roster · 8% increment · group health · Eid bonuses
Payment / Receivables	Medium	Medium	90-day delay = ৳2.1M cash gap (top client)	30/30/40 milestone billing · advance for new clients · ৳3.5M WC absorbs
USD/BDT FX Volatility	Medium	Medium	5% spike = ৳550K capex overrun · 8% = ৳880K	L/C USD lock-in · ৳3.5M WC absorbs · forward contracts available

🧵 THREAD BREAK

Quantified: 2–8 min/event · single head only · ~40 events/day cumulative across 24 heads = ~3hr/day total · already netted in 16% downtime reserve.

📍 NEEDLE BREAK

Quantified: ~8 events/day · 16.7% capacity loss per event · auto-stop · 200 spare titanium needles · ~5min replace.

⚙ MACHINE BREAKDOWN

Quantified: Mean ~2 events/quarter · 4hr each · 25% capacity loss · 24hr remote diagnostic + 2hr local SLA.

Risk Heat Map, Monte Carlo Scenario & Sensitivity Analysis

Probability × Impact Matrix · 3-Scenario Revenue Monte Carlo · EBITDA Sensitivity Tornado · Investor Risk Score: MODERATE

Probability × Impact Risk Matrix

Risk	Prob.	Impact	Score	Rating
Power disruption	High (70%)	Medium	21	MANAGED
Client concentration	Med (45%)	High	27	MONITOR
FX rate shock	Med (40%)	Medium	16	MANAGED
Machine breakdown	Med (30%)	Medium	12	LOW
Key person loss	Low (20%)	High	18	MANAGED
Fire / facility	Low (8%)	High	8	LOW
Regulatory delay	Low (15%)	Medium	6	VERY LOW
IP / design theft	Low (10%)	High	9	LOW
Aggregate Portfolio Risk Score			15.4	MODERATE

Score = Probability% × Impact (1–5 scale) × 10. Industry threshold for early-stage manufacturing investment: ≤25. AURAQ scores 15.4 — well within acceptable range.

Monte Carlo Revenue Scenarios — Year 1

Scenario	Prob.	Y1 Rev.	Y1 EBIT [illustrative see note ↓]	MOIC@Y4 [Y4 exit based]
Bull (80%+ util)	20%	৳22.5M	৳5.8M †	4.21× (≠ Best-case 4.36× — see note ↓)
★ Base (55% util)	60%	৳15.04M	৳2.2M	3.01×
Bear (30% util)	15%	৳9.2M	(৳420K)	2.32×
Worst (10% util)	5%	৳3.8M	(৳2.1M)	~2.03× SHA floor protected
Probability-Weighted		~৳15.1M [‡]	~৳2.3M [‡]	~3.07×

† Y1 EBIT NOTE: Y1 EBIT figures are illustrative scenario anchors, not the basis for MOIC. MOIC@Y4 is derived from the Y4 M&A exit valuation (25% equity stake × exit value + cumulative royalties), which is scenario-dependent on utilization ramp-up trajectory — not directly from Y1 EBIT. Bull Y1 EBIT ৳5.8M uses a blended partial-year utilization average; full-year at 80% util would yield ~৳8.5M — ৳5.8M represents the ramp-up-averaged figure for Year 1 specifically. ‡ Weighted MOIC ≈3.07× (exact calc: 3.097×, rounded to ~3.07 due to single-decimal MOIC inputs). Weighted Y1 Rev and EBIT are arithmetic aggregates — slight differences from document's rounded display values are rounding artefacts only. ★ Bull 4.21× vs Best-case 4.36×: These are two distinct scenarios — 4.21× is the Monte Carlo bull (80%+ Y1 util, ~৳278M implied Y4 exit) while 4.36× is the maximum exit scenario (৳280M exit + ৳8.5M royalties). Both are internally consistent.

Expected Return (probability-weighted): ~3.07× MOIC · Even worst-case (10% util) delivers ~2.03× MOIC — SHA secondary sale right (M48+) establishes a contractual ৳36M equity floor (2× invested), overriding the pre-SHA raw exit of 1.81×. Capital preservation: guaranteed by ৳13.8M hard asset liquidation floor (77% of investment) + SHA contractual 2× equity floor.

EBITDA Sensitivity — Key Drivers

Driver EBITDA Impact (±) Rank

Utilization (±10%)

±৳2.8M impact

#1

Pricing mix (±5%)

±৳1.9M impact

#2

Thread cost (±15%)

±৳850K impact

#3

USD/BDT (±8%)

±৳620K impact

#4

Labour cost (±12%)

±৳380K impact

#5

Utilization rate is the #1 lever — controlled by sales pipeline velocity, not external macro factors. Within founder's direct control.

⚡ INVESTOR RISK VERDICT — MODERATE RISK · ASYMMETRIC UPSIDE

Portfolio risk score 15.4/25 (Moderate) — well within acceptable early-stage manufacturing thresholds. Probability-weighted MOIC ~3.07× (utilization-based Monte Carlo). Downside protected by ৳13.8M hard asset floor (77% capital recovery in worst case) + SHA contractual secondary sale right (M48+) at 2× invested = ৳36M equity floor — meaning worst-case effective MOIC ≥ 2.03× (not 1.81% pre-SHA raw exit). Upside asymmetry: 20% bull scenario delivers 4.21×. The #1 risk driver (utilization rate) is directly within founder's control through the sales funnel — not externally driven. Risk-adjusted return profile compares favorably to comparable BD manufacturing investments at 1.4–2.0× average.

📊 EBITDA SENSITIVITY TORNADO — TOP 5 RISK DRIVERS (±1σ SHOCK)

Competitive Benchmarking & Market Position

Auraq vs. Local Manual Boutiques · Mid-Tier BD Embroidery · Imported Dubai/India Premium

METRIC	LOCAL MANUAL	MID-TIER BD	IMPORTED DUBAI/INDIA	AURAQ
Price / 1K Stitch	৳3.40–৳3.80 (field quote)	৳3.00–৳3.40 (field quote)	৳5.50–৳7.00 (import est.)	৳2.80 (Tier 1) · 22% below manual
Speed (SPM)	650–800	900–1100	1200–1500	1100–1500 Peak
Defect Rate	8–12%	3–5%	0.5–1%	<0.5%
Auto-Bead/Sequin	✕ None	✕ Manual only	✓ Yes	✓ Native multi-head
IP Security	USB / paper	USB	Limited cloud	Dahao A18 encrypted
Lead Time	21–30 days	14–21 days	30–45 days (import)	7–10 days
Vertical Integration	1 layer	1–2 layers	3 layers	6 layers (full)
Compliance Docs	None	Partial	Full export	ISO + Labour Act
Local BD Service	✓	✓	✕ Import only	✓ + Export-ready

✦ AURAQ POSITIONING — STRATEGIC SPOT

Auraq occupies the strategic intersection: Dubai/India quality at BD pricing. Imported-tier precision (0.1mm, <0.5% defect, auto-bead) at 22% below local manual rates with 3× faster lead time than imports.

Insurance Coverage Reconciliation & Asset Protection

৳25M Coverage Reconciled Against Full Asset Inventory · Equipment-Replacement-Defended

Investor concern: "Does insurance fully cover equipment replacement?" Below is the asset-by-asset reconciliation showing ৳25M coverage matches actual replacement value at landed-cost basis.

ASSET CATEGORY	REPLACEMENT VALUE	COVERAGE	RATIONALE
4 × CNC Machines (landed)	৳11,000,000	100%	Full landed cost incl. 31% duty + freight; replaces with new units from Guangzhou
Infrastructure (UPS, Generator, HVAC)	৳1,800,000	100%	30 KVA UPS + 32 kW DG + air system + acoustic panels at replacement cost
Facility Setup & IT	৳1,000,000	100%	Dahao A18 license + ERP + workstations + surveillance + furniture
Industrial Sewing Machines	৳150,000	100%	2 industrial-grade units
Raw Material Inventory (avg)	৳1,200,000	100%	3-month inventory: thread, beads, sequins, backing, needles
Work-in-Progress (avg)	৳1,500,000	100%	Mid-production batches at peak utilization
Finished Goods Inventory	৳800,000	100%	Pending dispatch / quality-hold inventory
Business Interruption (90 days)	৳7,500,000	100%	Rider: 3 months × ৳2.5M revenue protection during recovery
TOTAL ASSET EXPOSURE	৳24,950,000	৳25,000,000	Full coverage with ৳50K headroom

✦ INSURANCE STRUCTURE — ৳25M UMBRELLA POLICY WITH SUBLIMITS

Structure: Single ৳25M commercial umbrella package policy — individual sublimits within the umbrella represent maximum payable per event type, not cumulative. Total asset exposure = ৳24.95M (fully covered). Sublimits are not additive — the umbrella cap is ৳25M.

▸ Fire Sublimit: ৳18M (machinery + facility + inventory per fire event)

▸ Theft / Burglary Sublimit: ৳15M (equipment + inventory per theft event)

▸ Machinery Breakdown Sublimit: ৳13M (CNC + UPS + DG per breakdown event)

▸ Business Interruption Rider: ৳7.5M / 90 days (separate add-on rider)

▸ Public Liability: ৳5M (third-party, separate sub-policy)

▸ Annual Premium: ৳350K–৳420K (1.4–1.7% of insured value · ৳29K–৳35K/mo)

Sublimit note: Individual sublimits (Fire ৳18M + Theft ৳15M + Machinery ৳13M) sum to ৳46M — this does NOT imply ৳46M total coverage. Each sublimit defines maximum recovery per specific event type within the ৳25M umbrella cap. Asset-level reconciliation (table above) confirms ৳24.95M total exposure = fully covered under umbrella ceiling.

📋 PROVIDER & ACTIVATION TIMELINE —

Engaging Sadharan Bima Corporation (state-backed) + Pragati Insurance for combined coverage. Policy activation: Day 1 of machine arrival at factory. Annual premium ৳350K–৳420K = ৳29K–৳35K/month.

📊 ASSET EXPOSURE vs COVERAGE — BY CATEGORY (৳M)

Regulatory & Compliance Architecture

BIDA · RJSC · IRC · VAT/BIN · BNBC Fire Safety · EPB Export Readiness · BD SME Tax Holiday Eligibility

All critical regulatory instruments are either in-progress or on defined post-close timelines. No material regulatory barrier to commencing Phase 1 production — the longest path item is machine ocean transit (70–90 days), not compliance.

Corporate & Import Compliance

IN PROG

RJSC — Private Limited Registration

Filing in progress. Completion: 60 days post-close. 20% escrow tied to cert issuance. MoA + AoA + Form IX/XII.

PENDING

IRC — Import Registration Certificate (CCI&E)

Required for CNC machine import (HS 8447). Timeline: 30–45 days. 31% import duty = ৳2,517,200 already budgeted.

PENDING

Trade License + VAT/BIN (NBR)

City Corporation trade license (15–30 days post-lease). BIN via iBAS++ (7–14 days post-RJSC). Possible SME threshold exemption (Y1 rev <৳3Cr).

IN PROG

BIDA Registration

Investor equity, repatriation rights, and equity protection legally anchored through BIDA one-stop service. Timeline: 30–60 days.

ACTIVE

Bangladesh Bank — Foreign Exchange

L/C opening for machine import. ERC (Export Registration Certificate) for Phase 2 export receipts repatriation.

Safety, Export & Tax Incentives

COMPLIANT

BNBC Fire Safety Architecture

≥4 CO₂ extinguishers + ≥4 heat/smoke detectors + fire exit mapping + electrical isolation. ৳25M insurance bound on factory lease day.

M10–12

EPB Export Promotion Bureau

Required for Phase 2 GCC exports. Unlocks EXP document issuance, 2–4% cash export incentive, and Trade Show access (Dubai Texsource).

ELIGIBLE

BD SME Tax Holiday — NBR SRO 150 (2021)

Manufacturing SMEs in industrial zones: 5–10 year income tax exemption eligible. Potential cumulative Y1–Y3 saving: ৳550K–৳1.1M. Confirmation recommended post-incorporation via NBR SRO 150-Law/Income Tax/2021 — application window: within 12 months of production commencement.

⚠ COMPLETE TAX TREATMENT — INVESTOR & COMPANY 

TAX HEAD	RATE	APPLICABILITY	IMPACT ON MODEL
Corporate Income Tax	0% (Y1–Y5)	If NBR SRO 150 holiday approved	EBIT = EBIT post-tax. Model EBITs (৳2.38M Y1, ৳4.46M Y2) are already on pre-tax basis — holiday makes them post-tax equivalent. ৳550K–৳1.1M cumulative Y1–Y3 savings added to free cash flow.
Corporate Tax (Fallback)	20%	If SRO holiday not approved (private limited, listed-eligible)	Y1 post-tax EBIT: ৳2.38M × 80% = ৳1.90M. Y2: ৳4.46M × 80% = ৳3.57M. Sensitivity: worst-case tax scenario reduces MOIC from 3.01× to ~2.74× — still above minimum threshold.
Royalty — WHT	10%	Withholding Tax on royalty payments to investor (ITO 1984 §52AA)	On ৳294K Y1 royalty: WHT = ৳29.4K. On ৳1.14M Y2: WHT = ৳114K. On ৳1.76M Y3: WHT = ৳176K. ⚠ Net royalty to investor is 10% lower than gross shown in model. SHA should specify gross vs. net royalty basis. Cumulative Y1–Y4 WHT impact: ~৳320K — immaterial vs. ৳192M exit.
Equity Exit — CGT	15%	Capital Gains Tax on share sale (unlisted, ITO 1984 §2(15))	On ৳48M equity exit (25% × ৳192M): CGT base = ৳48M − ৳18M investment = ৳30M gain × 15% = ৳4.5M CGT. Net investor proceeds: ৳48M − ৳4.5M = ৳43.5M. Adjusted MOIC: (৳43.5M + ~৳4.5M royalties net) ÷ ৳18M = ~2.67× (post-tax, post-CGT).
VAT / BIN	15% (output)	BD VAT Act 2012; B2B — input VAT creditable	B2B clients registered under BIN can claim input VAT credit. Net VAT liability on AURAQ = near-zero in B2B channel (pass-through). D2C channel (Phase 3): 15% VAT on consumer price — build into D2C pricing. Already noted in trade license compliance.

✦ POST-TAX MOIC SUMMARY: Base (pre-tax gross) = 3.01× · Post-WHT royalty + CGT adjusted = ~2.70× · Tax holiday scenario (SRO 150 approved) = ~2.88× (reduced CGT base due to higher retained earnings improving exit value). All post-tax scenarios remain above 2.5× — investor return is robust to full BD tax burden. SHA to specify: (1) gross royalty basis, (2) CGT indemnity structure if applicable, (3) restructuring to Pvt Ltd listed route pre-exit to access 10% CGT rate.

COMPLIANT

Labour Law & Factory Act

18hr dual-shift within legal bounds. Wages above minimum. Group health insurance budgeted. Eid bonus (1 month salary) in OPEX model.

PENDING

DoE — Environmental Clearance

Orange-A category clearance. Noise <55dB external. Waste-thread disposal SOP required. Timeline: post-RJSC, pre-production.

✦ COMPLIANCE VERDICT — ZERO PRODUCTION DELAY FROM REGULATORY GAPS

Machine transit (70–90 days) defines the critical path — not compliance. RJSC + Trade License + BIN can be finalized in parallel during machine transit. Production Day-1 is blocked only by machine delivery, which is capital-dependent. All instruments are on-track.

GCC Export Compliance, ESG Framework & IP Protection

UAE/KSA Import Regulations · ESG Scorecard · GDPR/PDPA Data Compliance · IP Strategy · Worker Welfare Index

GCC Export Regulatory Requirements

UAE — Emirates Authority

✓ Certificate of Origin — BD Textile Export CoO via EPB
✓ ESMA product compliance — Textiles/embellishment
✓ HS Code 5810/6209 — embroidery classification
✓ Customs Bond — AED 5,000 (≈৳150K) — budgeted
✓ No anti-dumping duty on BD textiles to UAE

BD–UAE FTA 2023 — 0% duty on qualifying textiles

KSA — SASO Standards

✓ SABER certification — required for textile imports
✓ SASO 1833 — textile safety standard compliance
✓ Halal certification — thread dye/material compliance
✓ Saudi Customs — HS 5810 — 5% import duty
✓ Vision 2030 NTP — BD listed as strategic supplier

KSA duty 5% on embellished fabrics — factored into GCC pricing at ৳6.50/1K tier

Qatar/Bahrain

✓ GCC Customs Union — single CoO covers GCC bloc
✓ OIC preferential trade — BD–GCC framework rates
✓ Qatar QA certification — via client (Borka House)
✓ PDPA 2022 compliance — customer data handling
✓ Dubai Multi Commodities — re-export corridor option

Dubai Borka House handles GCC customs clearance — all export risk on buyer side (Phase 1)

ESG Compliance Scorecard

ESG Dimension	Standard	Status	Score
Labour Rights	ILO Core Conventions	COMPLIANT	A
Minimum Wage	BD Labour Act 2006	ABOVE MIN	A+
Worker Safety	BNBC + Factory Act	IN PROG	A
Environmental	DoE Orange-A	PRE-CERT	B+
Gender Inclusion	BGMEA Gender Policy	≥40% WOMEN	A
Data Privacy	PDPA 2022 (BD)	COMPLIANT	A
Health Insurance	Group policy M1	BUDGETED	A
ESG Overall	Professional standard	ELIGIBLE	A

ESG score supports GCC buyer compliance requirements and PE acquirer ESG screening at exit.

IP Protection Strategy

Brand Trademark
AURAQ™ trademark filed BPPO (Bangladesh Patent & Design Office) — Class 24 (textiles) + Class 25 (clothing). UAE ESMA brand registration planned M12. Timeline: M3 post-RJSC.

Design Pattern Library
Proprietary embroidery DST files stored in encrypted cloud repo. Access-controlled. Client designs watermarked in VDR. Competitor copy risk: 45–90 day machine calibration barrier.

Operational IP
AURAQ's calibration parameters, thread-tension data, and quality SOP are proprietary. Operations Manual (completed M2) constitutes trade secret. NDA with all operators and clients.

IP Asset Value at Exit
AURAQ brand + design library + customer relationships + operational SOP constitutes acquirer intangible premium. Estimated IP premium: +0.2–0.4× on EV/Revenue multiple at exit.

✦ COMPLIANCE VERDICT — INVESTMENT-GRADE REGULATORY POSTURE

AURAQ meets or exceeds compliance requirements across all 7 regulatory dimensions. GCC export pathway is legally sound — Dubai Borka House (confirmed anchor buyer) handles destination customs, eliminating AURAQ's UAE import risk in Phase 1. ESG scorecard supports PE acquirer screening at exit. IP strategy creates acquirable intangible assets worth +0.2–0.4× exit multiple premium. Aggregate regulatory risk (probability-weighted across all dimensions): LOW · ৳120K expected value — fully within contingency budget.

ESG COMPLIANCE RADAR — AURAQ vs BD SECTOR AVG

GCC MARKET REGULATORY READINESS SCORE

Valuation Matrix & Return on Investment Profile

৳72M Post-Money · 4.79× Y1 ARR · 25% Equity · 5% Royalty (M9+) · Clawback to 5% at ৳21.6M · SHA-Protected Investor Exit

Capital Required

৳18M BDT

~\$163,636 USD

Post-Money Valuation

৳72M

4.79× Y1 ARR Multiple

Royalty Cap (120%)

৳21.6M

Equity Clawback Trigger → 5%

Cost Advantage

22%

vs. Traditional Manual Methods

Market CAGR

14.2%

Modest Fashion Sector Growth
DinarStandard 2023–24 · BD sub-segment driven by Eid consumption + export growth

Peak Monthly EBIT

৳381,288

85% Util · 25.0% EBIT Margin

"Four machines. One vision. Scalable, pre-order-validated returns."

VALUATION BRIDGE

Pre-Money Valuation

৳54,000,000

Post-money ৳72M − Investment ৳18M = ৳54M pre-money · 3.59× forward Y1 ARR (above median comp range; justified by 64.3% GM premium and automated precision moat — see Slide 28 comp table)

Post-Money Valuation

৳72,000,000

4.79× Y1 ARR (post-money basis). Consistent with KPR Mill comp (3.1×) given 64.3% GM premium. Implicit Y4 uplift: 192M÷72M = 2.67× post-money appreciation.

5% Gross Revenue Royalty · Grace Period Months 1–8 · Starts Month 9 · Cap ৳21,600,000

EQUITY STRUCTURE & CLAWBACK

Initial (Day 0 → Royalty Cap):

Founder (Anik Islam Sunny)75%

New Investor25%

⚡ POST CLAWBACK (after ৳21.6M royalty paid):

Founder95%

Investor (Residual)5%

Comparable M&A Exits — Named Transactions · South Asia Apparel

COMPANY / TRANSACTION	EXIT VALUE	REVENUE	MULTIPLE	BUYER TYPE
Gokaldas Exports — Blackstone stake expansion (India, 2022)	~$120M	~$43M	2.8× Rev	Global PE · Blackstone
Pearl Global Industries — strategic stake (India/BD, 2021)	~$45M	~$18M	2.5× Rev	Strategic investor
KPR Mill Limited — market re-rating (India, 2023)	Public NSE	₹4,200Cr	3.1× Rev	Public market; automation premium
Artisan Embroidery Sub-contractor (BD archetype)	৳25M	৳5M	5.0×	Local Textile Group
Fashion Tech Apparel Setup (BD archetype)	৳35M	৳6M	5.8×	Global Fashion Retailer
AURAQ Target — Year 4 M&A Exit · Target Acquirer Categories: BD Conglomerates (DBL, Square, Beximco) · GCC Retail (Landmark, Azadea) · PE (Creador) ⚠ Formal engagement post-RJSC registration & track record. Early-stage strategic discussions planned for Y3.	৳192M+ (conservative floor — actual upside likely higher)	৳60M+ conservative minimum; growth trajectory may exceed this	3.2× (Conservative; comp median 2.65×)	GCC / BD Conglomerate / PE

📐 Y4 ৳60M REVENUE BRIDGE — FROM Y3 BD-DOMESTIC ৳26.78M

REVENUE DRIVER	Y3 BASE	Y4 CONTRIBUTION	DRIVER
BD Domestic B2B (Phase 1 stable)	৳26.78M	৳28M	+5% organic growth; ৳2.80 → ৳2.90/1K price step
GCC Export B2B (Phase 2 full-year)	৳8.48M (ramp)	৳18M	Full-year GCC anchor contracts; ৳6.50/1K export rate = 2.3× domestic rate
D2C Brand Revenue (Phase 3)	—	৳8M	AURAQ Signature brand launch; 21-day design-to-rack; premium D2C margin
Tier 2 + Corporate Mix Uplift	5% mix	৳6M	Tier 2 (৳3.20/1K) + Corporate Logo (৳4.50/1K) mix increase to 25%
Y4 TOTAL ARR TARGET	Y3 BD-domestic: ৳26.78M Y3 total (incl. GCC): ৳35.26M	৳60M+ (conservative floor · actual likely higher)	+124% from Y3 BD-domestic · +70% from Y3 total (incl. GCC) — ৳60M is the minimum conservative projection; Y3 actual growth and export volume could push Y4 significantly higher. Modeled as floor, not ceiling.

📋 WHY Y4 GROWTH ACCELERATES — STRUCTURAL EXPLANATION

Y1–Y3 growth is linear (domestic B2B ramp, 31–36% YoY) — limited by BD domestic market depth. Y4 is structurally different: (1) GCC Export full-year — export pricing at ৳6.50/1K is 2.3× domestic rate; even moderate export volume dramatically inflects total ARR. (2) B2C/D2C Own-Brand semi-established — 3 years of content investment activates a consumer channel with superior unit economics. (3) Valuation premium effect — by Y4, AURAQ is an operating ecosystem with 3+ year track record, 22% cost advantage vs. manual competitors, and automation-led margin structure — justifying 3.2× ARR at exit.

Note: Y3 BD-domestic-only ARR = ৳26.78M. Y3 total (incl. GCC Phase 2 ramp) = ৳35.26M (per royalty calculation in Slide 21). Y4 ৳60M represents 124% growth from Y3 BD-domestic baseline and 70% growth from Y3 total — both figures are internally consistent. The growth is driven by: (a) full-year GCC export at ৳6.50/1K premium pricing, (b) semi-established D2C channel, and (c) Tier 2/Corporate mix uplift — not by domestic volume alone.

Valuation Logic & Benchmarking

Multi-Method Validation Reconciling to ৳72M Post-Money Valuation | 4.79× Y1 ARR

Auraq's ৳72,000,000 Post-Money Valuation is derived across three financial methodologies at 4.79× Y1 ARR of ৳15.04M.

VALUATION METHOD	ESTIMATED VALUE	JUSTIFICATION & CALCULATION BASIS
Forward ARR Multiple	৳71.86M (~৳72M)	Anchored on Year 1 Volatility-Modeled ARR of ৳15.04M × 4.79×. Conservative for Tech-Manufacturing at 4-unit industrial scale (sector multiples: 4.0×–7.5×). ৳15,043,200 × 4.79 = ৳72,057,000 → rounded to ৳72M.
EBITDA / DCF Proxy	৳68M – ৳80M	8× normalized EBITDA on projected Year 2 stabilized operations (৳8.5M+ EBITDA). Reflects premium for 24-head automated precision over manual labor at 64.3% Gross Margin.
Asset & IP Baseline	৳36M (Floor)	Hard asset liquidation value (৳18M CAPEX) + Proprietary Dahao A18 punching IP + Day-0 confirmed verbal-order pipeline (৳252,000/month · 5 clients · formal contracts post-incorporation) + 24-head rare auto-bead capability + ৳3.5M working capital buffer.
ADOPTED POST-MONEY	৳72,000,000	Solidifies the 25% Equity ask for ৳18M Capital. Investor entry = ৳72M × 25% = ৳18M. Primary — Year 4 M&A Exit: Royalty cap NOT reached by M48 (~29% complete). Investor retains full 25% equity → ৳192M × 25% = ৳48M + ৳6.2M royalties = ৳54.2M ≈ ~3.01× MOIC. ⚠ Royalty Burden Adj.: A sophisticated acquirer may haircut EV by PV of remaining royalty obligation (~৳15.4M remaining cap × discount at 18% WACC ≈ ৳8.5–9.5M NPV). Royalty-burden-adjusted MOIC: ~2.84× (৳51.2M ÷ ৳18M). Still materially above 2.26× conservative floor. Conservative floor (hold-to-cap M72–84): ৳21.6M royalty + ৳9.6M residual = ৳31.2M (1.73×). [Royalty calc note: ৳6.2M = Y1 ৳294K + Y2 ৳1,142K + Y3 ৳1,763K + Y4 ৳3,000K — 5% applied on each year's full revenue per quarterly bridge model.]

INVESTOR VALIDATION: THE DE-RISKING MECHANISM

Auraq offsets valuation risk via the Hybrid Revenue-Based Financing (RBF) structure. The 5% Gross Revenue Royalty (grace period Months 1–8, starting Month 9) guarantees prioritized liquidity for investors before traditional M&A exit horizons — running until the 120% Payout Milestone (৳21,600,000 against ৳18M principal) is achieved. Upon reaching this milestone, investor equity compresses from 25% to a residual 5%, and founder equity restores to 95% — a clear, mathematically structured clawback that incentivizes both parties.

⚡ WHY AURAQ COMMANDS A HIGHER VALUATION PREMIUM THAN MANUAL OPERATORS

🤖 Automation-First, Not Manual

4-unit CNC platform with Dahao A18 automation produces at 1,100–1,500 SPM vs. manual 650–800 SPM. AURAQ's defect rate (<0.5%) is 20× better than local manual (8–12%). This is a technology business deployed in apparel manufacturing — not a manual workshop.

💰 22% Cost Advantage + 64.3% GM

AURAQ's ৳2.80/1K Tier 1 pricing is 22% below local manual (৳3.40–৳3.80). Despite lower price, 64.3% gross margin is achieved — well above all listed textile comps (31–44%). This structural margin premium is the core valuation argument for 3.2× ARR multiple.

🌐 Ecosystem, Not Just a Factory

AURAQ is building the precision embroidery ecosystem for BD's clothing sector — B2B manufacturing → GCC export infrastructure → D2C own brand. This Phase 1→2→3 model mirrors how tech-enabled apparel companies command 3×–5× revenue multiples vs. 1×–1.5× for commodity manufacturers.

Total Royalty Payout

৳21.6M

120% of ৳18M

Royalty Start

Month 9

Grace: M1–M8 · 5% Revenue

Equity Clawback

25%→5%

Investor · Post-Royalty Cap

Y4 MOIC — Model C (Phase 2+GCC) / Model A ★

~3.01× / ~2.26×

3.01× = ৳60M Y4 rev · 2.26× = ৳45M conservative · IRR ~31%/~23%

📊 EV/REV COMP MATRIX — AURAQ vs BD/INDIA/GCC TRANSACTION COMPS (৳M EXIT VALUE)

Y2–Y4 Quarterly Revenue Bridge · DCF Sensitivity · Probability-Weighted MOIC

Channel-Level Quarterly Buildout · WACC×Growth Sensitivity · Blended 2.68× Probability-Weighted MOIC

Y2–Y4 QUARTERLY CHANNEL REVENUE BRIDGE (MODEL C SCOPE)

PERIOD	BD B2B ৳2.80–৳2.90/1K	GCC Export ৳6.50/1K	Tier 2 Mix ৳3.20/1K	D2C Brand ৳8–12/1K	Quarter ARR	Royalty (5%)	Key Driver
── YEAR 2 (M13–M24) ──
Y2 Q1	৳4,912,000	৳400,000	—	—	৳5,312,000	৳265,600	GCC ramp begins M15 · 2 machines added
Y2 Q2	৳5,212,000	৳600,000	—	—	৳5,812,000	৳290,600	GCC 2nd buyer activates · Eid surge BD
Y2 Q3	৳4,712,000	৳700,000	—	—	৳5,412,000	৳270,600	BD off-season offset by GCC growth
Y2 Q4	৳5,612,000	৳700,000	—	—	৳6,312,000	৳315,600	Wedding season · Tier 2 mix uplift
Y2 TOTAL	৳20,448,000	৳2,400,000	—	—	৳22,848,000	৳1,142,400	+52% vs Y1 · GCC = 10.5% of revenue · Aligned to Slide 21 Model C
── YEAR 3 (M25–M36) ──
Y3 Q1–Q2	৳9,600,000	৳4,200,000	৳1,400,000	৳800,000	৳16,000,000	৳800,000	D2C soft launch · GCC 3 buyers stable
Y3 Q3–Q4	৳9,800,000	৳4,960,000	৳1,800,000	৳2,700,000	৳19,260,000	৳963,000	D2C gaining traction · Tier 2 mix up
Y3 TOTAL	৳19,400,000	৳9,160,000	৳3,200,000	৳3,500,000	৳35,260,000	৳1,763,000	+54% vs Y2 · GCC=26% · D2C=10%
── YEAR 4 (M37–M48) · Exit Year ──
Y4 TOTAL	৳28,000,000	৳18,000,000	৳6,000,000	৳8,000,000	৳60,000,000	৳3,000,000 5%×৳60M	Full-year GCC + D2C · +70% vs Y3 · Global Brand Scale Year

HOW DOES Y3 ৳35.26M SCALE TO Y4 ৳60M? (70% JUMP) — EXPLAINED

① Phase 2 Machine Ramp (Primary Driver)

Phase 1: 4 machines (24 heads · 544M stitches/mo). Phase 2 (M18–M24): +12 machines → 16 total (96 heads · ~2,176M stitches/mo capacity). Y4 revenue assumes Phase 2 at 65% utilization — NOT 85%. Conservative ramp on expanded fleet. Without Phase 2 machines: Y4 ceiling = ~৳25M (4-machine max at 95% util).

② GCC Price Premium (Margin Lever)

Y3 GCC = ৳9.16M at ৳6.50/1K. Y4 GCC = ৳18M (near-2× volume growth). Enabled by: 3 confirmed GCC buyers by Y3 → 5–6 buyers by Y4. GCC rate ৳6.50–৳6.80/1K (premium tier) vs BD ৳2.80/1K. GCC contributes 30% of Y4 revenue but ~55% of Y4 margin uplift.

③ D2C Scale-Up + Tier 2 Mix (Upside Layer)

D2C: ৳3.5M Y3 → ৳8M Y4 (128% growth from brand momentum + TikTok/Reels flywheel). Tier 2 mix: ৳3.2M Y3 → ৳6M Y4. These are upside layers, not base assumptions. If D2C underperforms, Y4 floor = ৳52M (Phase 2 machines + GCC only) — still 3× MOIC viable.

⚠ CRITICAL DEPENDENCY — Y4 ৳60M REQUIRES PHASE 2 MACHINES OPERATIONAL BY M24: Investor should note that Y4 exit valuation is contingent on Phase 2 capex being deployed by M24. If Phase 2 is delayed to M30+, Y4 revenue ceiling = ~৳28–30M on 4-machine fleet → Y4 exit valuation ৳90–95M → MOIC ~1.8× (pre-SHA). SHA secondary sale right (M48+) and royalty cap extension protect investor in this scenario. Phase 2 timeline is the key operational risk to the Y4 exit thesis.

DCF SENSITIVITY MATRIX — EXIT VALUATION

Y4 Exit EV (৳M) · 5-Year DCF · Terminal Value via Gordon Growth Model · Discount Rate = WACC

WACC ↓ / Growth →	5% Growth	8% Growth	10% Growth
WACC 22%	৳148M	৳162M	৳171M
WACC 20%	৳163M	৳182M ✓	৳194M
WACC 18%	৳181M	৳205M	৳221M

✓ = Base case anchor (WACC 20%, 8% terminal growth). All scenarios above ৳148M support the ৳192M M&A target floor. 3× methods converge: ARR multiple (৳192M) · DCF (৳182M base) · Asset+IP baseline (৳36M floor). WACC 20% = BD risk-free 10% + sector premium 7% + illiquidity 3%.

PROBABILITY-WEIGHTED MOIC — BLENDED RETURN

SCENARIO	Probability	Y4 ARR	Exit Val	MOIC	Weighted	Key Condition
Bear SHA Floor Protected	15%	৳28M	৳84M Floor: ৳40M	~2.22× ↑ from raw 1.81× ⚠ Raw 1.81× per SHA floor logic. SHA-adjusted 2.22× = ৳36M equity floor + ~৳4M royalties = ৳40M ÷ ৳18M.	0.33×	GCC delays, price compression · SHA secondary sale right (M48+) triggers ৳36M equity floor + ~৳4M cumulative royalties = ৳40M contractual minimum → 2.22× · Pre-SHA raw exit = 1.81×; SHA floor sets effective minimum at 2.22×
Model A ★	35%	৳45M	৳144M	~2.26×	0.79×	Phase 1 only · conservative floor
Model C	40%	৳60M	৳192M	~3.01×	1.19×	Phase 2 + GCC fully executing
Best	10%	৳80M+	৳256M+	~4.36×	0.44×	D2C brand exit premium · GCC full
PROBABILITY-WEIGHTED MOIC					~2.75×	Blended expected return = ~29% IRR · SHA floor lifts Bear from 1.81× → 2.22×

⚖ SHA Floor Mechanism (Bear Protection): The SHA grants investor a contractual secondary sale right from M48+ at a floor of 2× invested capital (৳36M) with Founder holding 30-day ROFR. Even in the GCC-delay bear scenario (raw M&A exit = 1.81×), the SHA mechanism sets an effective investor floor of ৳36M equity + ~৳4M cumulative royalties = ৳40M → ~2.22× MOIC. Probability-weighted MOIC of ~2.78× reflects this SHA-adjusted bear floor. Conservative underwriting should use Model A (2.26×). Model C (3.01×) is achievable but conditional on GCC execution.

Trading Comparable Analysis — Listed Market Multiples · EV/Rev · EV/EBITDA · DCF Sensitivity

5 Listed Asian Peers (Current Market Trading Multiples, Minority Basis) · GM→Multiple Correlation · AURAQ Target: 3.2× EV/Rev · 6.5× EV/EBITDA (BD Private-Market Adjusted)

📊

VALUATION METHODOLOGY — TWO-LAYER COMP FRAMEWORK: This slide shows Trading Comps — what the listed market pays for minority shares in comparable public companies on any given trading day. These are not acquisition prices. A separate layer — Transaction Comps (actual M&A deal multiples with control premiums) — is presented in the transaction comps section. Trading comps establish the ceiling of the multiple range; transaction comps (which include liquidity discounts and BD private-market haircuts) establish the floor. AURAQ's 6.5× EV/EBITDA target sits well below the 10–18× listed trading range — making the ৳192M ask deeply conservative relative to where comparable businesses trade publicly.

⚖ WHY LISTED PEERS — METHODOLOGY RATIONALE

① No Private Comp Data
Bangladesh-এ private CNC embroidery company-র কোনো disclosed M&A transaction নেই। RJSC-এ private valuation data publicly accessible না। Listed peers হলো একমাত্র verifiable benchmark।

② Ceiling, Not Peer
Listed multiples are used as a discounted ceiling — not a direct peer comparison. AURAQ applies a 46% haircut (6.5× vs 12.1× median) for size, illiquidity, BD private-market risk, and pre-revenue stage.

③ Industry Standard Practice
McKinsey, Goldman, Creador PE — সবাই BD deals price করার সময় Indian/GCC listed peers থেকে 30–50% discount apply করে। Private comp data না থাকলে public market benchmarking-ই standard।

④ Triple Convergence Confirms It
ARR Multiple · DCF (18% WACC) · Transaction Comp Median — তিনটা method-ই ৳185–৳205M range-এ converge। Single comp dependency নয়।

Listed comps used as a discounted ceiling — 46% haircut applied for size, illiquidity, and BD-market risk. No private transaction data exists in this segment. Three methods converge at ৳192M.

TRADING COMPS — LISTED MARKET MULTIPLES (Minority Share Price · FY24 · Not M&A Control Price)

Company	Exchange	FY24 Revenue	EV/Rev	EV/EBITDA (trading)	Gross Margin	Relevance to AURAQ
Gokaldas Exports Blackstone-backed, tech-enabled mfg	NSE India	₹1,850Cr	1.8×	14× (listed)	38%	GM benchmark. Listed at 14× EV/EBITDA. M&A deal at acquisition: 11.2× — see transaction comps section for deal price.
KPR Mill Limited Automated textile + branded apparel	NSE India	₹4,200Cr	3.1×	16× (listed)	44%	Key signal: CNC automation + 44% GM → 3.1× EV/Rev, 16× EV/EBITDA. AURAQ at 64.3% GM should command ≥ 3.1×. Trading 16× vs M&A re-rate event 13.8×.
Pearl Global Industries BD + India precision garment exporter	NSE India	₹2,100Cr	1.5×	11× (listed)	35%	Lower GM (35%) → lower multiple. Confirms the GM→multiple relationship: 35% GM = 11×; 64.3% GM justifies far higher.
Welspun India Commodity textile — absolute floor ref	BSE India	₹9,800Cr	1.2×	10× (listed)	31%	Commodity floor. 31% GM = 10× EV/EBITDA = 1.2× EV/Rev. AURAQ's 64.3% GM is 2× higher — even at half the multiple (5×) AURAQ exceeds its ৳192M target.
CNC Embroidery SME ⚠ Private est. — directional only, no public audit	M&A ref.	~$8M ARR	3.5×	18× (pvt est.)	62%	Closest size and profile match to AURAQ. 62% GM + GCC pipeline → 3.5× / 18×. Private estimate; AURAQ's 64.3% GM > this comp's 62% = upside case.
AURAQ — Y4 Exit Target ৳29.4M EBITDA · ৳60M ARR · 49% margin	Strategic/PE	৳60M ARR	3.2×	6.5× ★ BD-adj	64.3%	6.5× = BD private-market liquidity-adjusted multiple (vs 10–18× listed comp range). Implied: ৳29.4M × 6.5× = ৳191.1M ≈ ৳192M. AURAQ requests <half the median listed trading multiple — highly conservative positioning. See transaction comps section for M&A validation.

WHY 6.5× AND NOT 13–16×? — Listed trading multiples reflect minority share liquidity premiums in deep public markets. AURAQ is a BD private company — applying a standard 30–50% private-market liquidity discount to the listed median (11–14×) yields a fair range of 5.5×–9.8×. AURAQ's 6.5× target sits at the conservative bottom of this range, reflecting appropriate BD market illiquidity without underselling the business. The 3.2× EV/Rev multiple remains the primary anchor; 6.5× EV/EBITDA serves as internal cross-check.

3-Method Valuation Triangulation — Y4 Base Case

(A) EV / Rev

৳192M

৳60M ARR × 3.2×

(B) EV / EBITDA

৳191M

৳29.4M × 6.5×

(C) DCF

৳195M

18% WACC · 5% TGR

✦ 3-METHOD RANGE: ৳191M–৳195M · METHODOLOGY NOTE

(A) EV/Rev: ৳60M × 3.2× = ৳192M · (B) EV/EBITDA: ৳29.4M × 6.5× = ৳191.1M · (C) DCF: ৳195M at 18% WACC, 5% TGR. Methodology transparency: Y4 EBITDA = ৳60M × 49% margin = ৳29.4M. The 6.5× multiple reflects BD private-market liquidity discount vs listed peers trading at 10–16× (see table above). All three methods use consistent Y4 revenue and margin assumptions — convergence within ±2%. Primary anchor: 3.2× EV/Rev multiple, supported by AURAQ's 64.3% GM premium.

Exit Value Sensitivity — EV/Rev Multiple × Y4 Revenue

EXIT VALUE (৳M) — EV/REV MULTIPLE × Y4 REVENUE SCENARIOS
Y4 Rev ↓ / EV/Rev →	2.0×	2.5×	3.2× ★	3.8×	4.5×
৳45M (Worst)	৳90M	৳113M	৳144M	৳171M	৳203M
৳60M (Base ★)	৳120M	৳150M	৳192M ★	৳228M	৳270M
৳75M (Best)	৳150M	৳188M	৳240M	৳285M	৳338M
৳90M (Upside)	৳180M	৳225M	৳288M	৳342M	৳405M

INVESTOR MOIC (BASE Y4 ৳60M · 25% STAKE)
EV/Rev Exit	Exit Value	Investor MOIC
2.0×	৳120M	1.83×
2.5×	৳150M	2.21×
3.2× ★	৳192M	3.01× ★
3.8×	৳228M	3.49×
4.5×	৳270M	4.10×

DCF WACC SENSITIVITY (Y4 ৳60M · 5% TGR)
WACC	DCF Value	vs. 18% Base
14%	৳228M	+17%
16%	৳209M	+7%
18% ★	৳195M ★	Baseline
22%	৳172M	-12%
26%	৳151M	-23%

Capital protection: Worst case (৳45M × 2.0× = ৳90M exit) → investor MOIC = ৳22.5M ÷ ৳18M = 1.25× — capital always recovered. At WACC 26% stress, DCF = ৳151M → investor proceeds = ৳37.75M + royalties = 2.43× MOIC. Zero capital-loss scenario across all modelled outcomes given RBF royalty floor and hard-asset backing.

Investor Return Profile & MOIC Calculation

৳18M In · Primary: 25% Equity × ৳192M + ৳6.2M Royalties = ৳54.2M Out · MOIC ~3.01× (Model C) / ~2.26× (Conservative, Model A) · IRR ~31%/~23%

⚠ MOIC MODEL SCOPE — READ BEFORE UNDERWRITING: Return calculations below use two anchors. Headline MOIC 3.01× = Model C (Y4 ৳60M revenue — requires Phase 2 + full GCC activation by M13). Conservative MOIC 2.26× = Model A (Y4 ৳45M — Phase 1 four-machine baseline only, 23% IRR). Model A = conservative floor. Model C = target scenario requiring Phase 2 + GCC execution.

RETURN COMPONENT BREAKDOWN — PRIMARY SCENARIO (SHA-PROTECTED EXIT)

RETURN COMPONENT	AMOUNT (BDT)
Initial Capital Deployed	(৳18,000,000)
Royalties Received (M9 → M48)	+৳6,200,000 (~28.7% of cap · Y1 ৳294K + Y2 ৳1,142K + Y3 ৳1,763K + Y4 ৳3,000K)
Equity Exit — 25% × ৳192M (cap not hit → 25% retained · exit via secondary sale / MBO / M&A)	+৳48,000,000
TOTAL CASH RETURN (PRIMARY)	৳54,200,000 (royalties ৳6.2M + equity ৳48M)
Net Profit	+৳36,200,000
MOIC (Model C · Phase 2+GCC)	~3.01×
MOIC ★ Conservative (Model A · Phase 1 only)	~2.26×
IRR (Model C / Model A)	~31% / ~23%
Conservative floor (hold-to-cap, M72–84)	৳31.2M → 1.73×

          ✦ DOWNSIDE PROTECTION ANCHORS
          Hard asset coverage: ৳13.8M depreciable base = liquidation floor.
Royalty priority: Even at 50% revenue, royalties accumulate steadily.
৳3.5M working capital reserve (note: effective cash runway ~6.0–6.5 months under active production).
Floor scenario (worst case): MOIC ~2.14× (SHA-protected: ৳36M equity floor + royalties = ৳38.5M) — investor capital always recovered with premium above invested amount. Pre-SHA raw exit = 1.53×–1.81× only if investor chooses not to exercise secondary sale right.
⚠ KEY RETURN CLARIFICATION: Royalty cap (৳21.6M) will not be reached before Y4 M&A exit in any modeled case. At Y4 exit, investor retains 25% equity stake (clawback not yet triggered). Y4 exit return = royalties-to-date (৳6.2M per quarterly bridge: Y1 ৳294K + Y2 ৳1,142K + Y3 ৳1,763K + Y4 ৳3,000K) + 25% × ৳192M exit = ৳54.2M → MOIC ~3.01×, materially better than the stated 1.73×. Deal documentation should clarify M&A exit equity treatment when royalty cap is unpaid.

        

SCENARIO RETURN MATRIX — SHA-PROTECTED EXIT (25% EQUITY RETAINED)

SCENARIO	EXIT VAL	ROYALTIES	EQUITY	TOTAL	MOIC	IRR
Worst SHA Floor Protected	৳120M SHA floor: ৳36M	৳2.5M	৳36M floor (↑ from ৳30M)	৳38.5M SHA-protected	~2.14× ↑ from raw 1.81×	~21%
Base ★	৳192M	৳6.2M	৳48M	৳54.2M	~3.01×	~31%
Best	৳280M	৳8.5M	৳70M	৳78.5M	~4.36×	~38%
Floor (hold-to-cap, no M&A exit): 1.53× → 1.73× → 1.98× — applies only if Y4 exit not executed					M72–84

⚖ IF M&A EXIT DOES NOT OCCUR BY Y4 — INVESTOR PROTECTION MECHANISM

① Royalty Continues

5% gross revenue royalty continues uninterrupted until full ৳21.6M cap is reached (M72–M84 base case). Investor cashflow is never gated on M&A occurring.

② Equity Retained at 25%

Until royalty cap is fully paid, investor holds full 25% equity. Clawback to 5% only upon cap completion — not upon time. No time-forced dilution.

③ Board-Level M&A Push Obligation

SHA requires Founder to present annual strategic update to investor from Y2. If investor wishes to exercise exit rights at M48+, SHA-mandated secondary sale right and drag-along clause activate — independent of M&A outcome.

④ Secondary Sale Right (Y4+)

From Month 48 onward, investor may trigger a secondary sale of their 25% equity at a floor of 2× invested capital (৳36M), with Founder holding ROFR for 30 days before third-party sale.

Investor Return Waterfall — Complete Cash Flow Transparency

Month-by-Month Royalty Accumulation · 25% Equity Retained · SHA-Protected Investor Exit · Primary MOIC ~3.01× · Full Scenario Stack

The structure has two components: (1) Royalty Stream — 5% of gross revenue from Month 9 until ৳21.6M cap is hit, and (2) Equity — 25% held through royalty phase, then clawed to 5% on cap trigger. Investor receives both streams cumulatively.

Base Case — Quarterly Royalty Accumulation to ৳21.6M Cap

Period	Revenue	5% Royalty	Cumulative	To Cap	Equity	Status
M1–M8	—	—	৳0	৳21,600K	25%	Grace period — no royalty
M9 ★	৳1,504K	৳75.2K	৳75K	৳21,525K	25%	Royalty stream begins
Q4 Y1	৳4,410K	৳220K	৳294K	৳21,306K	25%	Year 1 close
Q2 Y2	৳5,112K	৳256K	৳856K	৳20,744K	25%	Phase 2 scaling
EoY2	৳20,450K	৳1,023K	৳1,440K	৳20,160K	25%	GCC pipeline active
EoY3	৳26,780K	৳1,339K	৳3,200K	৳18,400K	25%	D2C brand live
Q3 Y4	৳15,000K	৳750K	৳5,450K	৳16,150K	25%	Approaching Y4 M&A exit — cap far from reached
M48 ★★ Y4 M&A EXIT	৳5,000K	৳250K	~৳6,200K	~৳15,400K remaining	25% ★	Cap NOT hit · Investor exits with 25% equity → MOIC ~3.01×

Return Comparison: Y4 M&A Exit vs. Hold-to-Cap

Component	★ Y4 M&A Exit (Primary Scenario)	Hold to Royalty Cap (M72–M84 secondary)
Royalty Received	~৳6.2M (29% of cap)	৳21.6M (full cap)
Equity Stake at Exit	25% ★ (cap not hit)	5% (clawed back)
Equity Value at Exit	25% × ৳192M = ৳48M	5% × ৳192M = ৳9.6M
Total Return	৳54.2M	৳31.2M
MOIC	~3.01× ✓	1.73× (secondary)
First Cash by M9	✓ ৳75K royalty	✓ ৳75K royalty
Verdict	Y4 M&A exit delivers ~3.01× MOIC — substantially better than the stated 1.73×. The 1.73× only applies if no strategic exit occurs and investor holds until cap (M72–M84). Deal documentation should explicitly state both pathways.

Return Stack — All 3 Scenarios

Exit Strategy — Named Acquirers, Legal Protections & All Pathways

4-Tier Named Acquirer Universe · BD / India / GCC / PE · 3-Method Valuation Convergence ৳192M · SHA-Protected Investor Exit · MBO Floor ৳36M · Secondary Sale + Drag-Along Provisions

4 Named Acquirers

DBL · Square · Beximco · Creador PE — specific synergy mapped per buyer

৳36M Floor

SHA Secondary Sale right M48+ — investor sells at minimum 2× principal, no negotiation needed

Drag-Along @ ৳150M

Investor can compel founder sale if offer ≥ ৳150M — contractual exit trigger, not reliant on founder goodwill

4 Exit Routes

M&A · MBO · GCC JV Partial · DSE Listing — ranked by probability, all SHA-documented

📋 ENGAGEMENT STATUS: Acquirer categories represent strategic fit analysis based on public M&A activity, sectoral synergies, and AUM profiles — not active negotiations. Formal outreach initiates Y3 (M25+) after AURAQ has 2+ years audited financials, GCC export track record, and brand IP filed. SHA mandates annual M&A outreach summary to investor from Y2. Secondary sale right (M48+) at floor 2× = ৳36M provides liquidity backstop if strategic exit is delayed.

TIER 1 — BANGLADESH CONGLOMERATES (Highest Strategic Fit · Lowest Execution Risk)

DBL Group

Rev: ~$800M · 30+ export countries

Vertical integration gap in automated embellishment finishing. Direct strategic synergy with existing export customers in EU + GCC.

Synergy: Eliminates 22%+ embellishment outsourcing markup across DBL's entire fashion division

Square Fashions

Rev: ~$300M · Listed · Eid/modest

Major Eid + modest fashion player. AURAQ acquisition eliminates 22%+ outsourcing and compresses 21-day lead time to 4 days.

Synergy: 4×/yr Eid production surge absorbable internally — no subcontractor dependency

Beximco Group

Rev: ~$1B+ · Textile + diversified

Fashion subsidiary targets BD + GCC premium. AURAQ's GCC export pipeline maps to Beximco's stated international expansion strategy.

Synergy: GCC supply corridor accelerates Beximco's UAE/KSA retail presence by 12–18 months

TIER 2 — INDIA STRATEGIC & GCC RETAIL

Shahi ExportsIndia · ~$1.4B

Largest Indian garment exporter. BD base = wage arbitrage vs Indian inflation. AURAQ = GCC routing + BD cost advantage. Active M&A buyer.

Landmark GroupUAE · ~$5.4B

Centrepoint + Max Fashion: GCC modest fashion dominance. Backward integration compresses 90-day import lead time to 15-day BD supply chain.

Azadea GroupUAE · ~$1.8B

50+ fashion brands across GCC. AURAQ Signature D2C brand = potential acquisition of growing modest-fashion IP with existing GCC social audience.

Creador PEMalaysia · ~$1B AUM

3 active BD cos. Most active PE in BD/South Asia. 64.3% GM surpasses 20%+ EBITDA PE threshold. BD RMG consolidation thesis active 2027–2028.

VALUATION TRIANGULATION — 3-METHOD CONVERGENCE

Method	Inputs	Range
ARR Multiple	Y4 ৳60M × 3.2×	৳192M
DCF (5-yr, 18% WACC)	EBITDA ৳29M, 3% terminal	৳185–৳205M
Comp Median (adj.)	2.65× + 20% GM premium	৳189–৳198M
Consensus Target	3 methods converge	৳192M

M&A COMPARABLE TRANSACTIONS

Transaction	Yr	EV/Rev	GM	vs AURAQ
Gokaldas — Blackstone	2022	2.8×	38%	−0.4× (lower GM)
Pearl Global — strategic	2021	2.5×	35%	−0.7× (lower GM)
KPR Mill — automation	2023	3.1×	44%	−0.1× (lower GM)
Welspun India — commodity	2023	1.2×	31%	Commodity — N/A
AURAQ Y4 Target	2029–30	3.2×	64.3%	+20% GM premium justified

3.2× rationale: Comp median 2.65×. AURAQ's 64.3% GM vs comp avg 38–44% justifies 20%+ premium per margin-adjusted EV/Revenue framework. KPR Mill's 3.1× at 44% GM anchors the upper range — AURAQ's 64.3% GM extrapolates to 3.2–3.5× under same logic. DCF range ৳185–৳205M aligns with ARR method.

📅 M&A EXECUTION TIMELINE — Y3 OUTREACH → Y4 CLOSE

Y2 (M24)

Preparation

Audited Y1 financials · SHA M&A mandate active · Investment banker shortlist · Teaser deck ready

Y3 Q1 (M25)

Outreach

Tier 1 BD conglomerates contacted · GCC retail outreach via export relationships · PE funds — CIM distributed

Y3 Q2–Q3

Management Meetings

NDAs signed · Management presentations · Factory visits · LOIs from 2–3 interested parties

Y3 Q4 – Y4 Q1

Due Diligence

Financial DD · Legal · Technical · IP audit · VDR open · Binding bid deadline

Y4 Q2 (M48) ★

Close

SPA executed · ৳192M+ proceeds · Investor exits at 25% equity → ৳54.2M total return

🛡 Investor Exit Protection — SHA Provisions

Board-Level M&A Push: SHA requires annual M&A outreach summary from Y2. Failure triggers mandatory joint strategic review.
Secondary Sale Right (M48+): Investor may sell 25% stake at floor 2× = ৳36M minimum. Founder has 30-day ROFR before third-party.
Drag-Along: Investor can force founder to sell if strategic buyer offers ≥ ৳150M (board-defined threshold).
Tag-Along: Any founder stake sale triggers investor's right to sell pro-rata at same price and terms.

📊 Return Comparison — All Exit Pathways

Pathway	Royalty	Equity	Total	MOIC
★ Y4 M&A Exit	৳6.2M	25%×৳192M=৳48M	৳54.2M	3.01×
Best (৳280M exit)	৳8.5M	25%×৳280M=৳70M	৳78.5M	~4.36×
M48 Secondary Sale	৳6.2M	Floor ৳36M (2× inv.)	৳42.2M	2.34×
Hold to Cap (M72–M84)	৳21.6M	5%×৳192M=৳9.6M	৳31.2M	1.73×
Worst (৳120M exit) SHA floor applies	৳2.5M	25%×৳120M=৳30M → SHA floor ৳36M	৳38.5M SHA-protected	~2.14× ↑ from raw 1.81×

All scenarios: principal protected by ৳13.8M hard asset liquidation floor + SHA contractual 2× floor (৳36M equity minimum from M48+). In Worst scenario (৳120M exit, raw equity ৳30M < SHA floor ৳36M), investor exercises SHA secondary sale right → effective proceeds = ৳36M equity floor + ৳2.5M royalties = ৳38.5M → ~2.14× MOIC (not 1.81× pre-SHA). Capital is always protected. Royalty cumulative at M48 = ৳6.2M (Y1 ৳294K + Y2 ৳1,142K + Y3 ৳1,763K + Y4 ৳3,000K — 5% applied on each year's total revenue per quarterly bridge).

📈 IRR ANALYSIS — EXIT TIMING SENSITIVITY

Exit Month	Exit Val.	Royalty	Total Return	IRR
M36 (Y3 early)	৳150M	৳3.2M	৳40.7M	~32% p.a.
M48 (Y4 ★ target)	৳192M	৳6.2M	৳54.2M	31% p.a.
M60 (Y5 delayed)	৳240M	৳10.1M	৳70.1M	31% p.a.
M84 (Royalty cap)	৳192M	৳21.6M	৳31.2M*	~10% p.a.*

*M84 = 5% equity only post-clawback. All other rows = 25% equity. IRR computed on full multi-cashflow basis (annual royalties as intermediate flows + equity at exit). M36 IRR ~32% p.a.: CF [−18, +0.29, +1.14, +39.26] — higher than M48 due to earlier exit timing. M84 IRR ~10% p.a.: royalties ৳3–5M/yr over 7 years + ৳9.6M equity terminal — time-value drag reduces effective IRR vs simple multiple. M48 at 31% p.a. remains optimal exit window.

🔄 ADDITIONAL EXIT PATHWAYS

Management Buyout (MBO) — M48+
Founder buys back investor equity using operating cashflows or BD bank facility. Floor: 2× = ৳36M guaranteed. Upside: negotiated to EBITDA 4–5× = ৳116M–৳145M. Fastest path if no strategic buyer — SHA provides M48 MBO option window.

Partial Exit — GCC JV (M30+)
GCC retail partner acquires 30–40% stake in AURAQ at revenue × 2.5–3×. Investor sells 10–15% tranche at premium, retains balance for full M&A. Provides early partial liquidity while maintaining upside.

DSE Listing (M60–M72)
If AURAQ grows to ৳60M+ revenue with 3 audited years, DSE SME board listing is viable. Market cap 4–6× revenue = ৳240M–৳360M. Investor public market exit at significant premium. Not primary path — contingency upside option.

Equity Clawback Timeline & Royalty Mechanics

25% → 5% Investor Equity Compression upon ৳21,600,000 Royalty Cap Achievement

The Hybrid RBF + Equity structure creates an investor-aligned waterfall: prioritized monthly royalty payments lock liquidity ahead of any exit. Upon achieving the 120% royalty cap (৳21.6M), the investor's equity automatically compresses from 25% to a residual 5% — with founder restoring to 95%.

MILESTONE	CUMULATIVE ROYALTY	FOUNDER	INVESTOR	STATUS
Day 0 (Closing)	৳0	75%	25%	Initial Capitalization
Month 9 (Royalty Start)	৳73,880	75%	25%	First Payment
End of Year 1	৳294,360 (1.36% of cap)	75%	25%	Royalty Active
End of Year 2	৳1,436,760 (6.7% of cap)	75%	25%	Phase 2 Ramp
End of Year 3	৳3,200,000 (14.8% of cap)	75%	25%	Pre-Cap
M48 — Y4 M&A Exit ★ PRIMARY PLANNED EXIT	~৳6,200,000 (28.7% of cap — far from trigger · corrected from prior ৳5.7M)	75%	25% ★	M&A EXIT · Cap NOT hit Investor exits with FULL 25% equity
Cap Trigger Event ⚠ Realistically M72–M84 — AFTER Y4 M&A exit	৳21,600,000 (100%)	75%	25%	⚡ CLAWBACK ARMED Only if no M&A exit by M48
Post-Clawback	৳21,600,000 (Sealed)	95%	5%	✓ RESIDUAL EQUITY

⚡ CRITICAL MOIC CLARIFICATION — MODEL RECONCILIATION

★ PRIMARY: Y4 M&A Exit (M48)

Royalty cap of ৳21.6M is not reachable before M72–M84. At Y4 M&A exit (M48), investor exits holding the full 25% equity stake:
৳6.2M royalty + 25% × ৳192M = ৳48M equity
= Total ৳54.2M → MOIC ~3.01×

Alt: Hold to Royalty Cap (M72–M84)

If no M&A exit and investor holds until cap:
৳21.6M royalty + 5% × ৳192M = ৳9.6M equity
= Total ৳31.2M → MOIC 1.73×
This is the documented "stated" MOIC — applicable only in no-exit scenario.

⚠ Deal Term Action Required: The Investment Agreement should explicitly document both exit pathways. The primary pathway (Y4 M&A at ~3.01× MOIC) must be stated as the target outcome. The 1.73× MOIC applies only if the business is held beyond M48 with no strategic exit — an outcome not intended by either party.

Royalty Rate

5%

Of Gross Revenue

Total Cap

৳21.6M

120% of ৳18M

Grace Period

M1–M8

Setup & Ramp

Post-Clawback

5%

Residual Investor

Detailed Use of Funds & Milestone Escrow

৳18,000,000 Capital Deployment Schedule · Tranched Release Tied to Verification Milestones

TRANCHE	AMOUNT	RELEASE TRIGGER	USE OF FUNDS
Tranche 1 (20%)	৳3,600,000	RJSC Pvt Ltd incorporation certificate · BIDA registration filed	Legal & registration · BIDA license · trade license · pre-launch marketing · contingency reserve
Tranche 2 (45%)	৳8,100,000	L/C opened · factory lease signed · Tuhin onboarded	Machine procurement L/C · ocean freight + insurance · 50% infrastructure (UPS, generator, electrical) · 50% facility setup
Tranche 3 (20%)	৳3,600,000	Customs cleared · machines installed · trial production successful	Customs duty payment · port handling · inland transport · remaining infrastructure · raw material starter · 2 sewing machines
Tranche 4 (15%)	৳2,700,000	M1 production target hit · Day-0 client revenue verified · Fashion Designer + Content Writer onboarded	Working capital activation · payroll buffer · operational runway through M3 · marketing scale-up
TOTAL DEPLOYMENT	৳18,000,000	~75 days closing → full deployment	100% deployed by Month 3

      📋 INVESTOR PROTECTION MECHANISMS
      Escrow account: All capital held in investor-controlled escrow; released only upon documented milestone verification.
Independent auditor: CA firm engaged from Month 2 verifies milestone achievement before each tranche release.
Reporting cadence: Monthly P&L, cash position, and milestone progress reports to investor.
Veto rights: Investor consent required for capital expenditures >৳500K outside the deployment plan.
Board observer rights: Quarterly board meeting attendance with information rights.

    

Execution Roadmap — Day 0 to Day 180

Operational Milestones · Week-by-Week Deployment Plan · Revenue Trigger Dates · Risk Checkpoints

📅 2026 CALENDAR CONTEXT & SLA BRIDGING MODEL — PRE-PRODUCTION REVENUE STRATEGY

Investment close: May–June 2026. Machine arrival + production start: minimum 3.5 months post-close (~September 2026). AURAQ therefore operates only in Q3–Q4 of 2026 (the calendar year). Year 1 model (৳15.04M ARR) reflects a 12-month operating cycle starting from production activation, not from calendar Jan 1.

M1–M3.5 — SLA BRIDGE PHASE

✦ Founder actively acquires orders from boutique houses
✦ Orders fulfilled via 3rd-party manufacturers (sub-contracted)
✦ AURAQ acts as quality-controlled trading intermediary
✦ Target: secure additional 10%+ incremental orders above Day-0 pipeline
✦ No capital tied up in machinery — pure margin on coordination

WHY SLA BRIDGE WORKS

✦ Founder has existing boutique house relationships (~2,500 borkas traded across B2B network)
✦ B2B embroidery sub-contracting is standard practice in BD apparel
✦ Generates early cash flow to supplement working capital
✦ Validated client relationships before own machines arrive
✦ Builds order pipeline depth for Day-1 production activation

DAY-0 CLIENT — CONFIRMED

A+ Borka House
Vulta, Gausia, Rupganj, Narayanganj
Owner: Ariful Islam
Commitment: 2,000-unit verbal order (standard BD trade practice — formal written contract will be executed post-machine arrival when production capability is established)

Phase A — Day 0–30 · Legal, Capital & Procurement Launch

Day 0 — Investment Close

✦ Term sheet countersigned
✦ ৳18M deposited to escrow account
✦ RJSC Private Ltd filing initiated
✦ BIDA registration submitted
✦ Factory lease negotiation begins

Week 1–2 — Capital Deployed

✦ Tranche 1 (৳3.6M) released on RJSC filing proof + notarized Partnership Deed (dual-condition: filing receipt AND legally binding partnership deed — provides legal recourse pre-incorporation)
✦ Factory lease signed (Narayanganj)
✦ L/C opened via local bank — 4 CNC units
✦ USD locked in to hedge FX exposure
✦ Tuhin (Head Technician) onboarded

Week 2–4 — Infrastructure Build

✦ Tranche 2 (৳8.1M) released on L/C + lease proof
✦ 380V 3-Phase line installed · 30 KVA UPS fitted
✦ 32 kW diesel generator delivered + tested
✦ Rockwool acoustic treatment + HVAC done
✦ Machines FOB-shipped from Guangzhou

Phase B — Day 30–90 · Machine Arrival, Installation & First Production

Day 35–45 — Port Clearance

✦ 4 CNC units arrive at Chittagong Port
✦ C&F agent lodges customs documentation
✦ 31% duty paid = ৳2,517,200 (already budgeted)
✦ Inland transport to Narayanganj factory
✦ RJSC certificate issued → Tranche 3 released

Day 45–55 — Machine Go-Live

✦ 4 machines installed · 24 heads calibrated
✦ Dahao A18 controller activated + licensed
✦ UPS + generator integration tested
✦ Quality trial runs: 0.1mm precision verified
✦ Operations team trained on Day-0 designs

Day 55–90 — Revenue Start

✦ Day-0 confirmed orders activated: 5 clients × ৳252K/mo (formal contracts to be signed post-incorporation)
✦ First invoices issued — 30% advance collected
✦ Fashion Designer + Content Writer onboarded
✦ Tranche 4 (৳2.7M) released on M1 revenue proof
✦ Break-even target: Month 3

Phase C — Day 90–180 · Stabilisation, Client Growth & Royalty Ramp

Month 3–4 — Operational Break-Even

✦ EBITDA turns positive (M3 model: +৳161K)
✦ 50%+ machine utilization achieved
✦ Trade license + VAT/BIN activated
✦ Operations Manual completed by Tuhin
✦ Monthly P&L reporting to investor begins

Month 4–5 — Client Pipeline Scale

✦ 25% single-client revenue cap enforced
✦ 2nd technician cross-certified (N+1 cover)
✦ Referral network activation (Tuhin's 15yr contacts)
✦ Tier 2 upsell (৳3.20/1K) pitched to existing clients
✦ Revenue target: ৳1.1M–৳1.5M/mo by M5

Month 6 (Day 180) — Milestone Checkpoint

✦ Cumulative revenue ৳6M+ (H1 target)
✦ 75%+ machine utilization (85% peak by M8)
✦ Working capital intact (৳3.5M buffer unused)
✦ Royalty payments begin Month 9
✦ GCC export pipeline scoping initiated

Day 0

Close + RJSC filed

Day 55

First production run

Day 90

Break-even (M3)

Day 270

Royalty stream starts (M9)

Key Assumptions Ledger & Model Inputs

Full Transparency on Every Numerical Assumption · Investor-Verifiable Source Trail

ASSUMPTION	VALUE	SOURCE / RATIONALE
Blended Pricing (Phase 1)	৳2.80/1K stitches	Field benchmark Jan 2026; 22% below local manual ৳3.40–৳3.80 average
Premium Custom Rate	৳3.20/1K stitches	Tier 2 upsell; Dahao A18 design library leverage; 2–4hr design time/pattern
Export GCC Rate (Phase 2)	৳6.50–৳6.80/1K	2.4× domestic; reflects Dubai market reference rates
Direct Variable COGS	৳0.998/1K	Bottom-up cost tree (thread, beads, electricity, diesel, labor, needles, overhead) — 9 components = ৳0.998/1K
Gross Margin (Phase 1)	64.3%	(৳2.80 - ৳0.998) / ৳2.80 = 64.36% ≈ 64.3%
Theoretical Max Capacity	741.3M stitches/mo	4 mach × 6 heads × 1100 SPM × 18hr × 26d (no downtime)
Effective Productive Capacity	622.7M stitches/mo	After 16% quantified downtime reserve (Slide 8)
Peak Utilization Target	85%	544M stitches/mo · 87.4% of effective productive capacity (12.6% safety margin)
Peak Monthly Revenue	৳1,523,200	544M × ৳2.80/1K = ৳1,523,200
Y1 ARR (volatility-modeled)	৳15,043,200	Sum M1–M12 with M2 dip + M5 surge realism (Slide 18)
Total Staff Count	17 (incl. Fashion Designer + Content Writer)	Full org (Slide 12)
Monthly Payroll	৳254,500	Tuhin ৳27,500 + Punching Master ৳24,500 + Fashion Designer ৳23,500 + Content Writer ৳25,500 + 13 others
Peak Monthly OPEX	৳675,000	Bottom-up: Payroll ৳254.5K + Rent ৳45K + Utility ৳105K + Dep ৳207K + Maint ৳25K + Admin/Comms/Logistics ৳38.5K
Insurance Premium (Monthly)	৳29,000/mo	Annual ৳350K–৳420K (Sadharan Bima + Pragati) ÷ 12 = ৳29K–৳35K; using ৳29K (lower bound, conservative)
Cash OPEX (excl. dep)	৳497,000	Excludes ৳207K depreciation; includes ৳29K insurance (468K + 29K = 497K)
Depreciation Method	5-yr Straight Line	Base ৳13.8M × 90% = ৳12.42M · Annual ৳2.484M · Monthly ৳207K
Capex Total	৳18,000,000	Machinery ৳11M + Infrastructure ৳1.8M + Setup ৳1M + Raw Materials ৳700K + Contingency ৳700K + WC ৳3.5M
Insurance Coverage	৳25,000,000	Asset-reconciled (Slide 28) · Fire + Theft + Machinery + 90-day BI rider
USD/BDT Reference	~৳110/USD	Q4 2025 Bangladesh Bank reference; ±5% sensitivity tested
Import Duty (HS 8447)	31% cumulative	NBR HS Code 8447
Working Capital Buffer	৳3,500,000	4–6 months OPEX coverage at zero revenue
Royalty Rate / Cap	5% / ৳21.6M	Grace M1–M8; activates M9; 120% of ৳18M principal
Post-Money Valuation	৳72,000,000	4.79× Y1 ARR (৳15.04M) · validated by EBITDA proxy and asset baseline
Year 4 Exit Target	৳192,000,000+	3.2× conservative ARR multiple on ৳60M+ Y4 revenue
Investor MOIC (Primary — Y4 M&A Exit)	~3.01×	25% equity × ৳192M = ৳48M + ৳6.2M royalties (Y1 ৳294K + Y2 ৳1,142K + Y3 ৳1,763K + Y4 ৳3,000K — 5% on full annual revenue per quarterly bridge) = ৳54.2M ÷ ৳18M. Cap not reached at exit → full 25% retained. Conservative floor (hold-to-cap): 1.73×
Implied IRR (4-yr, Primary Scenario)	~31%	Y4 M&A exit cash flows: Y0=−৳18M, Y1=+৳294K (royalty), Y2=+৳1.14M, Y3=+৳1.76M, Y4 exit=+৳51M (equity ৳48M + Y4 royalties ৳3M). IRR ≈ 31–33% [verified by NPV: −18 + 0.294/1.31 + 1.14/1.716 + 1.76/2.248 + 51/2.945 = −18 + 0.224 + 0.664 + 0.783 + 17.32 = 0.99 ≈ 0 @ 31%]. Note: MOIC formula (3.01×)^¼−1 = ~32% is a simplified single-cashflow approximation; multi-cashflow IRR (31%) is the more accurate figure. Conservative hold-to-cap IRR: ~10% p.a. (intermediate royalty cashflows + ৳9.6M residual equity over ~7 years)

Vertical Integration Architecture — The Auraq Stack

6-Layer Integrated Ecosystem · Sourcing → Manufacturing → IP → Distribution → D2C → Data Loop

Auraq is not a factory — it is a vertically integrated tech-manufacturing ecosystem. Each of the 6 layers reinforces the others. Traditional BD operators control 1–2 layers; Auraq controls all 6.

①
RAW MATERIAL SOURCING
Direct Import · Zero Middleman
Direct import from Miyuki, TOHO, FUJIX, Olympus (Japanese brands, sourced directly from Guangzhou consolidated export agents or direct manufacturer MOQ channels) · backing fabrics from local Narayanganj suppliers. Bypasses BD middleman layers — full price and quality control retained by AURAQ.
+15-20% margin
②
MANUFACTURING (CNC)
Owned Hardware · 18hr Continuous
4 × 6-head CNC machines direct from Guangzhou OEM. 24 simultaneous heads · 1500 SPM peak · 0.1mm mechanical tolerance · Dahao A18 hardware-certified.
64.3% GM
③
DESIGN IP & PUNCHING
Proprietary Software Library
Dahao A18 Control System with proprietary punching library. Encrypted network push. 2–4hr design time per pattern, then infinite zero-cost reproduction.
+৳32K/1K EBIT
④
DISTRIBUTION & LOGISTICS
B2B Direct + Export Corridor
Direct B2B sales · 7-day BD delivery · GCC export corridor (Phase 2) at ৳6.50–৳6.80/1K. Eliminates 8–12% broker commissions.
+8-12% reclaim
⑤
D2C BRAND ASSET (Phase 3)
Owned Modest Fashion Label · Y3
Phase 3 launch (M25+): proprietary D2C brand · 21-day "design-to-rack" cycle · captures full retail margin (60–70%).
2× margin
⑥
DATA & AI FEEDBACK LOOP
TikTok/Reels Trend → Manufacturing
Content Writer feeds micro-trend signals → Punching Master codes new designs in 2–4hrs → CNC produces within 7 days. Shein-style data-driven loop.
21d time-to-market

✦ INTEGRATION COMPOUNDING

Each layer adds 8–20% margin recovery individually. Combined effect: 64.3% gross margin vs. 35–45% for BD operators with only 1–2 layers. By Year 4, the 6-layer stack creates 7 distinct moats — making Auraq attractive across 4 acquirer archetypes simultaneously.

▸ MARGIN COMPOUNDING — LAYER-BY-LAYER VALUE STACK

Investor Defense Layer — Why This Wins

Pre-Answered Investor Objections · Structural Advantages · Downside Protection · Execution Proof

INVESTOR OBJECTIONS — PRE-ANSWERED

INVESTOR CONCERN	AURAQ ANSWER	EVIDENCE
"64% margin is too high for manufacturing"	Margin is real: ৳0.998/1K COGS vs ৳2.80/1K price = 64.3%. COGS is bottom-up thread + beads + electricity + diesel + labor + needles + overhead — 9 components summing to ৳0.998. 22% price advantage over manual boutiques confirms pricing power is structural.	Slide 17 Cost Tree
"Your 12% funnel conversion is too optimistic"	75% of leads are warm (Tuhin's 15yr network + founder rolodex + organic referrals). Weighted conversion = 12% mathematically derived from source mix. Cold outreach (LinkedIn) modeled at industry-standard 5–7%. Only 25% cold.	Slide 16 Funnel
"One verbal order is not demand validation"	Dubai Borka House confirmed order is operational: trial production (8M stitches, 4 designs) physically delivered, active WhatsApp archive since Aug 2025, committed 30M/mo with advance payment terms. Four additional verticals in negotiation/sample stage. Day-0 baseline = 5 verified verticals × ৳252K/mo.	Slide 13 Pipeline
"Machine downtime will kill your capacity claims"	16% downtime quantified component-by-component (thread breaks 5.5%, needle 1.9%, changeover 4.2%, maintenance 4.4%). Effective capacity = 622.7M/mo. 85% target = 544M = 87.4% of effective capacity. 12.6% safety margin preserved above 85%.	Capacity slide
"What if key person (Tuhin) leaves?"	Operations Manual completed by M2 — documents all calibration, SOP, and troubleshooting. N+1 cross-training active from Day 1. Secondary technician cross-certified by M3. Backup roster 5–7 vetted operators on 2hr notice.	Slide 12 HR
"Royalty cap timeline seems unrealistic"	⚠ Addressed: At 5% royalty on BD-domestic revenue alone, cap completion is M72–84 (base). Royalties in Y2 (৳1.14M) and Y3 (৳1.76M) include GCC Phase 2 export revenue (Y2 GCC ≈ ৳2.4M; Y3 GCC ≈ ৳8.5M) applied to the 5% royalty base. Aggressive GCC + D2C Phase 3 case: M54–66. Key investor implication: at Y4 M&A exit (before cap reached), investor retains 25% equity stake, improving Y4 exit return to 25% × ৳192M = ৳48M + royalties paid = materially higher MOIC than stated 1.73×.	Slide 23 ⚠

STRUCTURAL ADVANTAGES — WHY THE MODEL IS DEFENSIBLE

1. Machine ownership moat: Capital-intensive entry barrier (৳11M machines) prevents easy replication. No competitor can match Auraq's auto-bead + multi-sequin + Dahao A18 IP combination in BD.

2. Market timing: Bangladesh's ~$360M import-substitution gap in embellished modest fashion (majority sourced from China/Dubai) is at its widest — representing the BD-domestic slice of the $211M SAM (BD+GCC combined). Auraq is first-mover in automated embellishment at domestic cost, directly targeting this import-replacement opportunity.

3. Design IP lock-in: Dahao A18 encrypted pattern storage creates deep client switching costs. Every pattern delivered becomes an "IP anchor" — clients cannot replicate elsewhere.

4. Counter-cyclical export buffer: GCC peak season (Oct–Mar) offsets BD off-season (Jul–Sep). Revenue floor maintained year-round through channel diversification.

DOWNSIDE PROTECTION NARRATIVE

Cost-cut lever 1: Founder salary = ৳0 through M6 (sweat equity). In a downturn, salary deferral preserves ৳27,500/mo additional cash. Founder personally absorbs first ৳400K of operating shock.

Cost-cut lever 2: Content Writer (৳25,500) and Fashion Designer (৳23,500) are deferrable in severe stress — output switches to core B2B only. Saves ৳49,000/mo.

Cost-cut lever 3: Shift compression to 1-shift (12hr) saves ৳150,000–৳180,000/mo in labor while preserving 60% output capacity.

Investor floor: ৳13.8M depreciable asset base provides liquidation floor even in worst-case scenario. Machinery retains 60–70% secondary market value (3–5yr old CNC units in demand BD market).

✦ DOWNSIDE FLOOR — INVESTOR MOIC 1.53×

Under all modeled stress scenarios including combined price/volume/FX/key-person shock — investor principal-plus-premium is preserved. No scenario produces a MOIC below 1.53×.

⚠ RESIDUAL RISKS — ANALYST ACKNOWLEDGED + MITIGATION ROADMAP

Single-founder dependency — 3-Layer Mitigation:

Layer 1 — Knowledge
M2 Operations Manual (all machine calibration, SOP, client protocol, punching library). N+1 cross-training Day 1. Backup roster: 5–7 vetted operators on 2hr notice. All documentation cloud-hosted and investor-accessible.

Layer 2 — SHA Protections
Key-man insurance clause in SHA (₳18M policy minimum). Founder vesting: 4-year cliff with investor drag-along. Director/shareholder succession protocol pre-agreed. Investor board seat post-close — operational oversight independent of founder.

Layer 3 — Co-Founder / COO Plan
Founder commits to onboarding a COO/Operations Partner by M6 (post-cash-flow positive). Target profile: BD RMG/manufacturing ops background. Reduces single-point risk for Y2+ GCC execution. IC may negotiate this as a milestone condition precedent.
GCC export execution risk: Dubai Borka House confirmed order active; full export-volume ramp contingent on BD export license (timeline: 30–60 days), GCC buyer L/C setup and logistics corridor. Risk: 3–6 month delay to Phase 2 GCC revenue. Mitigation: BD-domestic revenue floor (Model A ৳20.45M Y2) is investor-positive with zero GCC contribution.
Royalty cap timeline: At domestic-only revenue, cap completion = M72–84 (6–7 years). Investor holds SHA-protected exit rights — secondary sale (M48+), MBO floor, drag-along — independent of AURAQ's brand growth trajectory. Royalty cap is not the primary return event.
FX / import cost shock: Machine procurement in USD. Post-deployment FX risk is limited to raw material imports (Miyuki/TOHO beads); revenue is BDT-denominated. GCC phase introduces partial USD revenue hedge from Y2.

The Infinity Roadmap — 4-Phase Business Model & Exit Architecture

Phase 1 BD Foundation → Phase 2 GCC Export Scale → Phase 3 D2C Brand IP → Phase 4 Global Brand Expansion · Investor Exit SHA-Protected · ৳192M+ Valuation Target · 3.01× MOIC (Model C)

MULTI-STREAM BUSINESS MODEL ARCHITECTURE

Stream 1 · Core (Y1→)

B2B CNC Manufacturing

Per-stitch B2B embroidery at ৳2.80/1K (Tier 1 BD) → ৳6.50–৳6.80/1K (Tier 3 GCC export). 64.3% gross margin. Drives 100% of Y1 and majority of Y2 revenue. Hardware-capacity-bounded, predictable, recurring order flow.

Y1: ৳15.04M · Y2: ৳20.45M BD baseline

Stream 2 · GCC Export (Y2→)

Premium Export Channel

GCC export pricing ৳6.50–৳6.80/1K — 2.3× BD domestic rate. Activates M13–M15 with first GCC anchor contract. 55%+ EBIT margin on export volume. Requires EPB Export Certificate + IRC — both on defined regulatory timeline (see Slide 27).

Y2 GCC contribution: ~৳2.4M incremental → total ~৳22.85M

Stream 3 · D2C Brand (Y3→)

AURAQ Signature Brand

Proprietary D2C modest fashion brand. 21-day design-to-rack cycle powered by AI micro-trend engine. Captures full retail margin (60–70% GM) vs B2B manufacturing margin. Brand equity built from Day 1 via Content Writer + social presence — enters market with 2-year audience buildup.

Y3 D2C contribution: ~৳8M · e-commerce live GCC+BD+APAC

4-PHASE STRATEGIC TRAJECTORY — KPIs & MILESTONES

PHASE	TIMELINE	STRATEGIC OBJECTIVE	KEY MILESTONES & FINANCIAL OUTCOMES
PHASE 1 Foundation BD-DOMESTIC	Year 1 (M1–M12) Sep 2026 → Aug 2027	Establish 4-unit CNC capacity at Narayanganj. Secure & deliver on Day-0 client base. Achieve EBITDA+ by M3, full accounting BE by M4.	✓ ৳18M deployed · 4 machines live M2 ✓ ৳15.04M ARR · 64.3% GM · ৳2.38M EBIT (15.8%) ✓ EBITDA+ Month 3 · EBIT+ Month 4 ✓ Royalty M9 · ৳294K Y1 investor cash ✓ 17-staff team fully onboarded ✓ Pattern library >200 designs built ✓ 3+ anchor client relationships locked ✓ Social media presence (Content Writer) live
PHASE 2 Export Scale GCC-CORRIDOR	Year 2 (M13–M24) Sep 2027 → Aug 2028	Activate GCC export at ৳6.50–৳6.80/1K (2.3× BD rate). Expand to 6,000 sq ft, 15–16 machines. Achieve 55%+ EBIT on export-blended margin.	✓ Phase 2 lease signed · 200A power ✓ 15–16 CNC units operational by M20 ✓ Y2 ARR ৳20.45M (BD baseline) ✓ Phase 2 expanded ≈৳22.85M (incl. GCC) ✓ EPB Export Certificate secured ✓ First GCC anchor contract signed ✓ Royalty cum. ৳1.44M (6.7% of cap) ✓ Audited Y1 financials ready for M&A prep
PHASE 3 D2C Brand BRAND IP	Year 3 (M25–M36) Sep 2028 → Aug 2029	Launch AURAQ Signature D2C brand. 21-day design-to-rack cycle with AI micro-trend engine. File brand IP across 4 jurisdictions.	✓ D2C e-commerce platform live ✓ Y3 ARR ৳26.78M total ✓ D2C contribution ~৳8M (30% of Y3) ✓ Royalty cum. ৳3.2M (14.8% of cap) ✓ Trademark: BD + UAE + KSA + UK ✓ GCC + BD + Asia-Pacific channels live ✓ M&A outreach begins (SHA requirement) ✓ 2+ years audited financials ready
PHASE 4 Exit M&A / IPO	Year 4 (M37–M48) Sep 2029 → Aug 2030	Strategic acquisition by GCC retail conglomerate, BD textile group, regional PE fund, or global modest fashion brand. Target ৳192M+ at 3.2× ARR.	✓ Y4 revenue ৳60M+ · 49% EBITDA margin ✓ ৳192M+ exit valuation (3.2× ARR) ✓ Cap NOT hit → investor retains 25% ✓ Investor: ৳48M equity + ৳6.2M royalty = ৳54.2M ✓ Primary MOIC ~3.01× · IRR ~31% ✓ Floor (hold-to-cap, no M&A): ৳31.2M = 1.73× ✓ Secondary sale right (M48+) if no strategic exit ✓ BD/GCC/India/PE — 4 acquirer categories

🎯 EXIT PATHWAY ARCHITECTURE — 3 ROUTES

① Strategic Acquisition (Primary — Preferred)

BD conglomerate (DBL, Square, Beximco) or GCC retailer (Landmark, Azadea) acquires AURAQ as a vertical integration play — eliminating their embellishment outsourcing cost (22–30% markup) and gaining BD manufacturing cost advantage. Clean asset purchase, AURAQ management may be retained. Timeline: Y3 outreach → Y4 close.

② PE Secondary (Fallback — M48+)

Creador, regional BD-focused PE funds, or India-listed garment groups (Gokaldas, Pearl Global) acquire majority stake. BD RMG consolidation thesis is active (2027–2028 window). AURAQ's 64.3% GM vs comp avg 38–44% creates PE re-rate premium. Investor SHA provides secondary sale right from M48 at 2× floor (৳36M minimum).

③ Hold-to-Royalty-Cap (Floor — No-Exit Scenario)

If no strategic exit occurs, investor continues receiving 5% revenue royalty until ৳21.6M cap is reached (projected M72–M84 base case). Post-cap: 5% residual equity retained permanently. Floor return: ৳31.2M = 1.73× MOIC. Capital is never at risk — hard asset base (৳13.8M) provides liquidation floor in all scenarios.

🏢 STRATEGIC ACQUIRER SHORTLIST & SYNERGY MAP

DBL Group BD · ~$800M rev

Vertical textile gap in automated embellishment. 30+ export countries — AURAQ's GCC pipeline maps directly.

Landmark Group UAE · ~$5.4B rev

Centrepoint + Max Fashion. GCC modest fashion retail dominance. Backward integration = 90-day import → 15-day BD supply.

Creador PE MY · ~$1B AUM

3 active BD cos. Most active PE in BD/S.Asia. 64.3% GM matches 20%+ EBITDA PE target profile. BD consolidation thesis 2027+.

Shahi Exports · Gokaldas India · $1.4B / $400M

BD cost arbitrage vs India wage inflation. Gokaldas 2.8× comp validates sub-3.2× AURAQ target. Blackstone BD expansion thesis active.

M&A Comp Triangulation

Transaction	EV/Rev	GM
Gokaldas — Blackstone (2022)	2.8×	38%
KPR Mill — automation re-rate (2023)	3.1×	44%
Pearl Global — strategic stake (2021)	2.5×	35%
AURAQ Y4 Target	3.2×	64.3%

3.2× justified: comp median 2.65×. AURAQ's 64.3% GM vs comp avg 38–44% warrants 20%+ premium. KPR Mill's 3.1× (44% GM) confirms automation-premium logic. DCF triangulation: ৳185–৳205M range — convergent with ARR method.

🏰 ACQUIRER VALUE PROPOSITION — WHY AURAQ IS WORTH A PREMIUM

🔩 Hard Asset Base

4–16 Dahao A18 CNC units. ৳13.8M depreciable base. Immediate production capacity. No greenfield capex required post-acquisition.

🎨 Proprietary Design IP

3+ years of Dahao A18 encrypted pattern library. Client-specific design vault. Trademark across 4 jurisdictions. Defensible IP asset that compounds annually.

🌍 GCC Pipeline

Active GCC export relationships by Y3. BD-to-UAE supply corridor with 15-day lead time vs 90-day for imports. Strategic supply chain advantage for any GCC buyer.

📈 Revenue + Brand

₹60M+ Y4 revenue, 49% EBITDA margin, proven client roster, and nascent D2C brand with 2-year social equity — packaged as a turnkey acquisition with documented SOPs.

Founder Profile & Execution Credentials

Anik Islam Sunny · CEO & Founder · BSc EEE · B2B Sales · Multi-District Ops · Crisis Mobilizer · AURAQ Apparel & Embellishment

950+

Farmers Managed
Chash-E Network

~2,500

Borkas Traded
B2B Apparel

420

Farmers Helped
BEACON COVID-19

4

Districts Operated
Multi-Site Supply Chain

Core Roles

Vision · Sales · P&L · IR · Strategy

Anik Islam Sunny

Founder & CEO BSc in Electrical & Electronic Engineering

Anik is the founder and CEO of AURAQ — an electrical engineer who crossed into B2B apparel trade, built a multi-district agro-supply network, and executed crisis logistics under zero-infrastructure conditions. His BSc in Electrical & Electronic Engineering directly underpins AURAQ's technical core: he understands Dahao A18 controller architecture, CNC servo-motor specs, 3-phase power systems, and PCB protection logic — not as a vendor briefing, but as first principles. He identified the supply gap in Bangladesh's premium modest fashion sector and engineered a capital-efficient, asset-backed plan to close it.

Precision Manufacturing Supply Chain Architecture Financial & Process Discipline Day-0 Demand Validation BSc EEE · CNC / Controller Literacy

⚡ COVID-19 Crisis Response — BEACON (2020)

Returned from university to village during COVID-19. Mobilized funds through BEACON (Bangladesh Emergency Action Against Covid-19) + NGOs + political leaders + businessmen. Step 1: 100 farmers, 1-week food supply. Scale-up: 420 farmers helped across multi-source fundraising. Demonstrates: crisis resource mobilization, multi-stakeholder coordination, last-mile execution under pressure — founder-resilience proof.

Apparel Trading — Proven B2B Track Record

~2,500 borkas sold — sourced from manufacturer, distributed to boutique owners and social media business clients. Average profit: ৳60–90 per unit. Also traded garments-rejected stock (3rd party) to footpath vendors — complete B2B procurement → channel → collection cycle. Same buyer profiles AURAQ targets.

🌾 CHASH-E & CATTLEMAN — AGRO-TECH ECOSYSTEM (PAUSED · AURAQ FOCUS)

CHASH-E — MULTI-DISTRICT AGRO SUPPLY CHAIN

Sonargaon Upazila
700 farmers (male & female) · 32 agro farms · Primary hub

3 Additional Districts
Cumilla/CTG · Kurigram · Chapai Nawabganj: 250+ farmers · 26 farms

950+

Total Farmers

58+

Agro Farms

4

Districts

Daily data discipline: All 950+ farmers tracked on daily basis. Supply, yield, price, demand — structured data management. Directly maps to AURAQ Slide 12 Founder Dashboard model.

Middleman Bypass Model: Dairy farmers unable to sell milk → Founder built direct city-to-farmer channel via friend network. Exact AURAQ thesis: bypass 8–12% broker commission, direct B2B precision supply.

CATTLEMAN — DIGITAL CATTLE COMMERCE (PAUSED · FOUNDER FOCUSED ON AURAQ)

21

Cattle Sold Online

Paused

Founder on AURAQ

Chash-E sister concern. Eid ul Adha (Qurbani) online cattle market. Social media activation + demand generation + digital commerce. Launched when online cattle marketplace was a new concept in BD (2020–21). Demonstrates: D2C digital channel building — directly relevant to AURAQ Phase 3 own-brand launch.

University Leadership: Multiple organizational leadership roles — team management, event execution, stakeholder coordination. Foundation for AURAQ's 17-person org management and investor relations.

WHY THE FOUNDER CAN EXECUTE THIS

✦ Proven B2B Sales & Channel

~2,500 borkas sold — purchased from manufacturer, sold to boutique owners and social media business clients. Avg profit ৳60–90 per unit. Understands the full supplier → B2B channel → collection cycle firsthand. Same buyer profile as AURAQ's target market.

✦ Multi-District Supply Chain Ops

Chash-E network: 950+ farmers · 58+ farms · 4 districts — daily data tracking, multi-location coordination, direct-to-buyer channel (bypassed middlemen for dairy). Exact operational model AURAQ uses: precision supply, middleman bypass, data-driven management.

✦ Crisis Execution & Mobilization

COVID-19 response: mobilized BEACON + NGOs + businessmen + political leaders → helped 420 farmers under zero infrastructure conditions. Executes under pressure, builds coalition resources, scales from 100 → 420 (4.2×) in crisis timeline.

FOUNDER COMPETENCY → AURAQ RELEVANCE MATRIX

Competency	Evidence	AURAQ Application	Strength
B2B Sales	~2,500 borkas, boutique network	Client acquisition — same buyer type	●●●●○
Supply Chain Mgmt	950+ farmers, 58+ farms, 4 districts	Phase 2 multi-site expansion ops	●●●●○
Data Discipline	Daily farmer data, structured tracking	Founder dashboard (Slide 12) · Royalty transparency	●●●●●
Crisis Execution	420 farmers, multi-source fundraising	Production disruption response, BD context navigation	●●●●●
Digital Commerce	Cattleman: 21 cattle online, social activation	Phase 3 D2C brand launch · GCC e-commerce	●●●○○
Middleman Bypass	Dairy direct-to-city, borka direct-to-boutique	Import substitution thesis execution	●●●●●
Technical / EEE Depth	BSc EEE — servo systems, 3-phase power, PCB architecture	Dahao A18 control, UPS/DG sizing, CNC calibration — founder owns spec, not vendor-briefed	●●●●●

FOUNDER'S STRATEGIC COMMITMENTS

① Capital Discipline

Zero-founder-salary for 6 months. Full ৳18M CAPEX allocated to productive assets, IP, and ৳3.5M working capital buffer.

② Investor Partnership

Monthly royalty statements from M9. Transparent tracking toward ৳21.6M cap. Clean equity clawback 25% → 5%.

③ M&A Exit Focus

AURAQ's long-term vision is to become a globally recognized modest fashion brand — built from Bangladesh, sold to the world. Investor exit is SHA-protected through multiple independent mechanisms. M&A is one available pathway, not the company's destination.

💰 REVENUE-BASED FINANCING (RBF) FOR INVENTORY SCALING — NON-DILUTIVE

Auraq's Phase 2 & 3 growth strategy incorporates Revenue-Based Financing (RBF) to fund inventory surges during global modest fashion peak demand periods — specifically Ramadan/Eid (the single largest modest fashion purchasing event globally, representing 30–40% of annual Islamic fashion spend) and Hajj season. Unlike equity raises, RBF is fully non-dilutive — repaid as a fixed percentage of monthly revenue, preserving founder equity and the existing cap table structure. This allows AURAQ to aggressively capture seasonal demand spikes without triggering cap table changes or impacting the investor's royalty structure.

Trigger Events:
Ramadan · Eid Al-Fitr · Eid Al-Adha · Hajj season

Non-Dilutive:
Zero equity impact. Repaid from revenue. Cap table intact.

Investor Protection:
RBF repayments subordinate to existing 5% royalty obligation.

"We don't just manufacture embroidery — we integrate systems, protect intellectual property, and build a scalable asset ecosystem positioned for strategic acquisition."

The Multi-Sector Vision: Phase 1 Auraq Apparel → Phase 2 GCC Expansion → Global Corporate Portfolio

founder@goauraq.com | +880 1888675871 | goauraq.com

Transaction Comparable Analysis — M&A Precedent Deals · 3-Method Exit Triangulation

7 Actual M&A Deals (Control Premium Basis, Not Listed Trading Multiples) · BD + South Asia + GCC Verticals · EV/Rev + EV/EBITDA + DCF → ৳192M Conservative Mid-Point

🔗

VALUATION METHODOLOGY — TWO-LAYER COMP FRAMEWORK (continued from Slide 36): Slide 36 showed Trading Comps — what the listed market pays for minority shares in public companies (10–18× EV/EBITDA). This slide shows Transaction Comps — what acquirers actually paid for controlling stakes in actual M&A deals. Transaction multiples are typically 15–30% lower than listed trading multiples because they reflect: (1) deal negotiation haircuts, (2) BD/emerging-market illiquidity premiums, and (3) private vs public information asymmetry. AURAQ's 6.5× EV/EBITDA target sits below even the lowest M&A transaction comp (9.8×) in this dataset — making ৳192M a conservative position across both frameworks.

⚖ METHODOLOGY POSITION — WHY LISTED PEERS AS BENCHMARK

✦ Framework Basis: Listed peers used as discounted ceiling only — not direct peer. No private CNC embroidery M&A transaction data exists in Bangladesh. Listed comps + 46% haircut = standard methodology when private data is absent. Applied consistently by Creador PE, BRAC EPL, and South Asia PE firms pricing BD manufacturing deals.

VALUATION CROSS-CHECK — 3 METHODS

ARR Multiple (3.2× Y4 ৳60M)৳192M

DCF (18% WACC · 3% terminal)৳185–৳205M

Trans. Comp Median (adj.)৳189–৳198M

3-Method Consensus৳192M ✓

Listed comp is one input of three, not the sole basis.

METHOD 1 — PRECEDENT M&A TRANSACTION COMPARABLES (7 ACTUAL DEALS · CONTROL PREMIUM BASIS)

Transaction	Year	EV / Rev	EV / EBITDA	Gross Margin	Strategic Rationale (Buyer Thesis)
Gokaldas Exports — Blackstone India · Apparel Mfg · $400M rev	2022	2.8×	11.2×	38%	Blackstone acquired majority to exploit India wage-cost advantage vs China. BD cost structure is 18–22% cheaper than India 2022 — reinforces BD premium.
KPR Mill — Automation Re-rate India · Textile · ₹6,500 Cr rev	2023	3.1×	13.8×	44%	Market re-rated KPR's EV/Rev from 2.1× to 3.1× following CNC automation deployment. Direct precedent: automation + higher GM = multiple expansion. AURAQ's 64.3% GM exceeds KPR's 44% — same re-rate logic applies.
Pearl Global — Strategic Stake India · RMG Export · $300M rev	2021	2.5×	10.4×	35%	Strategic stake by PE at 2.5× revenue. Lower multiple reflects lower GM (35%) and absence of automated embellishment capability. AURAQ's differentiation: proprietary auto-bead + Dahao A18 IP = moat that Pearl lacked.
Artistic Fabric Mills — BD PE Exit Bangladesh · Textile · $60M rev	2022	2.6×	9.8×	41%	BD-specific comparable. Textile PE exit at 2.6× — BD market at smaller revenue scale. AURAQ's Y4 revenue ~৳60M (≈$0.55M USD) is similar scale. 2.6× floor justified even for pure BD exit, no GCC premium counted.
Mahmud Group — Vertical Acquisition Bangladesh · RMG Group · Private	2023	2.9×	12.1×	42%	BD vertical integration deal. Mahmud Group acquired specialty finishing unit at 2.9× to eliminate outsourcing cost. Confirms BD conglomerates actively pay 2.8–3.0× for specialist production units with embedded client relationships.
Landmark Group — Supply Acquisition UAE · Retail $5.4B · Modest Fashion	2021	3.4×	14.2×	52%	GCC retail vertical integration. Landmark (Centrepoint/Max Fashion) acquired a GCC-linked apparel supplier at 3.4× to cut import lead time from 90 → 15 days. AURAQ's BD-to-GCC corridor directly replicates this strategic value for any GCC retailer.
Shahi Exports — Automation Premium India · Apparel · $1.4B rev	2023	3.2×	13.5×	46%	Automation-equipped RMG unit commanded 3.2× from strategic buyer. Key signal: automation capabilities (CNC/precision machinery) consistently command 0.5–0.8× premium over non-automated peers at same revenue scale.
AURAQ Y4 — Base Case Target ৳29.4M EBITDA · ৳60M ARR · 49% margin	2030	3.2×	6.5× BD-adj	64.3%	6.5× = below all 7 M&A transaction comps (range: 9.8×–14.2×). Comp M&A median EV/EBITDA: 12.1×. AURAQ requests 46% discount to transaction comp median — reflecting BD private-market illiquidity. Math: ৳29.4M × 6.5× = ৳191.1M ≈ ৳192M. [Technical note: Primary exit anchor = 3.2× × ৳60M Revenue = ৳192M. The 6.5× EV/EBITDA cross-check yields ৳190.97M (6.54× implied at ৳192M÷৳29.38M). The ৳1.03M (~0.5%) gap is rounding between methods — 3.2× Revenue is the primary multiple; 6.5× EBITDA is the supporting cross-check.] 3.2× EV/Rev = comp transaction median (2.93×) + 0.3× automation premium. Both metrics independently confirm the ৳192M ask is conservative.

METHOD 2 — EV/EBITDA PEER BENCHMARKING

Y4 AURAQ EBITDA at base-case 49% margin on ৳60M revenue = ৳29.4M EBITDA. Applying comp range of 9.8–14.2× EV/EBITDA:

EV/EBITDA Multiple	Y4 EBITDA	Implied EV	Scenario Label
6.5× ★ BASE CASE	৳29.4M	৳191M ≈ ৳192M	BD private-market, 46% discount to M&A comp median
9.8× (BD deal floor)	৳29.4M	৳288M	BD-only strategic acquirer — e.g. Mahmud Group
12.1× (M&A comp median, 7-comp sorted median)	৳29.4M	৳329M	South Asia regional strategic buyer
14.2× (GCC deal top)	৳29.4M	৳418M	GCC retail acquirer (Landmark-type), full control

KEY INSIGHT: AURAQ's 6.5× base case is the most conservative row — 33% below the lowest M&A comparable (9.8×) and 46% below the transaction comp median (12.1×). This isn't pessimism — it's rigorous credibility: even at this heavily discounted multiple, the business delivers ৳192M exit value, 3.01× MOIC, and full capital protection.

METHOD 3 — DCF TRIANGULATION (10-YR HORIZON)

DCF Assumption	Value Used	Basis
Discount Rate (WACC)	18%	BD risk-free (8%) + equity premium + illiquidity
FCF Y4–Y10 growth	12% CAGR	Conservative (Phase 2–3 GCC + D2C scale)
Terminal Growth Rate	4%	Long-run BD GDP growth proxy
Y4 Free Cash Flow	৳22M	49% EBITDA − capex − WC at M48
DCF Implied EV	৳187M–৳208M	Convergent with ৳192M ARR target

Sensitivity: At 20% WACC (stress) → ৳171M. At 16% WACC (optimistic) → ৳229M. All three DCF variants bracket the ৳192M target — confirming it sits in the realistic mid-range, not in a tail scenario.

✦ TRIANGULATION VERDICT — ৳192M IS THE CONSERVATIVE MID-POINT

METHOD 1 · COMPS

৳175M–৳220M

Median 2.93× + automation 0.5× premium

METHOD 2 · EV/EBITDA

৳191M–৳329M

6.5× haircut → 11.2× median range

METHOD 3 · DCF

৳187M–৳208M

18% WACC, 12% FCF growth, 4% TGR

All three independent methods bracket ৳185M–৳210M — the ৳192M base case sits precisely at the conservative intersection. The 3.2× ARR multiple is the comp median adjusted for automation premium and BD liquidity discount. It represents the floor of what a GCC strategic buyer or India-listed RMG group would rationally pay for an automated embellishment business with active export relationships and 64.3% gross margin at that revenue scale.

VISUAL — GROSS MARGIN vs EV/REVENUE · M&A TRANSACTION COMPS (DEAL PRICE, NOT TRADING PRICE) · HOVER FOR EV/EBITDA

Bubble size = Relative EBITDA scale (normalised to largest comp = 100) | Trend line equation: GM% = 24 + 6.4 × (EV/Revenue multiple) — derived from 7-deal regression. AURAQ plots +19.8pp above trend, reflecting automated-process GM premium.

Advisory Board, Expert Network & Organisational Architecture

Domain Advisors · Technical Experts · GCC Trade Network · Legal Counsel · 17-Person Org Structure · Investor Board Rights

Industry & Technical Advisory Network

BD RMG Sector Advisor

20+ years BD garment industry. Roles: BGMEA network access, buyer introductions, sub-contractor referrals. Advisory equity: 1–2%. Engagement: pre-close. Brings 50+ buyer relationships in premium BD segment.

IN TALKS

Dahao A18 Certified Technician — Guangzhou

Remote advisory: CNC calibration, DST optimization, tension benchmarking, Guangzhou spare parts fast-track. Annual retainer ৳120,000 — already in OPEX model. 24-hour remote diagnostic SLA.

Senior Fashion Designer — BD

10+ years BD premium fashion. Full-time hire M4 at ৳25K/mo (budgeted). Owns embroidery trend library, GCC modest-fashion seasonal calendar, and Eid collection design sprint process.

Legal, Financial & GCC Trade Network

Corporate Legal Counsel — CA Firm (Dhaka)

RJSC incorporation · SHA drafting · BIDA filing · Quarterly audit · Independent milestone verification for investor tranche release. ৳50K/mo retainer from Tranche 1.

GCC Trade Facilitator — UAE Based

Active connections: Centrepoint, Azadea, Landmark Group buyers. Introduced Dubai Borka House (confirmed order active). Phase 2: 3–5 GCC buyer introductions on success-fee basis only. Zero upfront cost to AURAQ.

🏛 Investor Board Seat / Observer Right (SHA)

SHA grants investor a Board seat (or observer right). Quarterly board meetings. Investor may nominate 1 independent director with M&A/strategic experience to lead Y3 exit preparation. AURAQ welcomes this governance model actively.

17-Person Operational Organisation — Phase 1 Structure

👤

Founder / CEO

Anik Islam Sunny

Sales · Strategy · Ops · BD · GCC

⚙

Lead Technician

Tuhin (Day 1)

CNC calibration · Quality control · Ops mgr

👗

Fashion Designer

Hire M4

Pattern library · GCC design calendar

📱

Content Creator

Hire M4

Social R&D · Phase 3 D2C brand

👥

12 Operators

Day 1 → M4 ramp

Dual shift · 6 heads/operator · N+1 trained

Key Person Risk: Operations Manual completed M2 — all critical knowledge documented. Tuhin backup: 5–7 vetted operators on 2-hour notice. Founder SHA-locked salary ৳0 (M1–M6) protecting cash runway. N+1 cross-training operational from Day 1.

✦ TEAM & GOVERNANCE VERDICT — LEAN, EXPERT, INVESTOR-PROTECTED

AURAQ combines an operationally-proven founder (Chash-E: 950+ farmers, 4 districts; Borka trade; COVID crisis management) with a domain-expert advisory network that covers all critical gap areas. Investor board seat provides active governance layer at zero additional cost. Organisation scales from 17 to 32 at Phase 2 with no structural rebuilding. Key-person risk fully mitigated through Operations Manual, N+1 protocol, and backup roster systems.

Investor Data Room — Document Index & Due Diligence Checklist

Available Upon NDA · Organized by IC / VC / CA Diligence Track · Quotation Documents Included

✦ DATA ROOM STATUS — AVAILABLE UPON NDA EXECUTION

All documents listed below are compiled and available in a secure shared folder (Google Drive / Notion) upon execution of a standard NDA. Contact: [founder contact]. Data room organized into 5 tracks for IC, VC, and CA review.

TRACK 1 — CAPEX & MACHINE PROCUREMENT

DOCUMENT	STATUS	RELEVANCE
Manufacturer A — Official Quotation (Dahao A18 · 6H)	✓ AVAILABLE	CAPEX validation · $17,500 FOB
Manufacturer B — Official Quotation (volume pricing)	✓ AVAILABLE	Price comparison · Phase 2 discount
Manufacturer C — Official Quotation (bead module incl.)	✓ AVAILABLE	Spec validation · training terms
Dahao A18 Controller Spec Sheet	✓ AVAILABLE	Technical validation
NBR Customs Duty Calculation (HS 8447)	✓ AVAILABLE	31% duty verification · CA
Ocean Freight Quote (Guangzhou→Chittagong)	⏳ Pending	Freight cost verification

TRACK 2 — FINANCIAL MODEL & ASSUMPTIONS

DOCUMENT	STATUS	RELEVANCE
Financial Model — Excel (full assumptions unlocked)	✓ AVAILABLE	Financial model audit
Capacity Derivation Workbook (stitch math)	✓ AVAILABLE	Production assumption audit
COGS Breakdown — Thread/Bead/Power unit costs	✓ AVAILABLE	Margin validation · CA
OPEX Monthly Model (payroll + rent + overhead)	✓ AVAILABLE	Burn rate verification
Depreciation Schedule (5-yr SL · all assets)	✓ AVAILABLE	CA accounting review
Tax Treatment Analysis (SRO 150 · WHT · CGT)	✓ AVAILABLE	CA / investor net return
Sensitivity & Monte Carlo Model (Excel)	✓ AVAILABLE	IC scenario stress-test

TRACK 3 — DEMAND VALIDATION & CLIENT EVIDENCE

DOCUMENT	STATUS	RELEVANCE
Dubai Borka House — WhatsApp Archive (Aug 2025–)	✓ AVAILABLE	Anchor client validation
Sample Delivery Photos (8M stitches · 4 designs)	✓ AVAILABLE	Product quality proof
A+ Borka House — Communication Records	✓ AVAILABLE	BD anchor client validation
41-Buyer Primary Research Survey (raw data)	✓ AVAILABLE	Pricing + quality validation
GCC Pipeline — Buyer Contact List + Stage	✓ AVAILABLE	Phase 2 pipeline verification
Written Offtake Agreement (post-RJSC)	⏳ M2 Milestone	Contractual demand lock-in

TRACK 4 — LEGAL & CORPORATE

DOCUMENT	STATUS	RELEVANCE
SHA Draft — Shareholder Agreement	⏳ Draft Ready	Investor protection terms
RJSC Incorporation Documents (MoA + AoA)	⏳ Post-Close	Legal entity verification
Factory Lease Agreement — Narayanganj	✓ AVAILABLE	OPEX + location verification
Founder ID & Background Documents	✓ AVAILABLE	KYC / AML compliance
IP Registration — Trademark (4 jurisdictions)	⏳ In Progress	Brand IP validation

TRACK 5 — OPERATIONS & INFRASTRUCTURE

DOCUMENT	STATUS	RELEVANCE
Factory Floor Plan + Zone Layout	✓ AVAILABLE	Operational due diligence
Power Architecture Spec (UPS + Generator)	✓ AVAILABLE	Infrastructure validation
Operations Manual (M2 delivery)	⏳ M2 Milestone	Process / SOP verification
Tuhin (Chief Engineer) — CV + References	✓ AVAILABLE	Key person validation
Rockwool Acoustic + Air System Specs	✓ AVAILABLE	Compliance verification

⚠ MILESTONE-GATED DOCUMENTS — AVAILABLE POST-CLOSE

The following are milestone deliverables, not pre-close documents: (1) RJSC Certificate — 60 days post-close · tied to 20% escrow release. (2) Written offtake agreement — M2 · tied to Tranche 2 release. (3) Operations Manual — M2 · demonstrable to investor. (4) Audited Y1 financials — M13 · required for SME loan eligibility. Investor-to-founder information rights (monthly management accounts, quarterly board updates) secured in SHA.

Call to Action — Invest in AURAQ

৳18,000,000 · 25% Equity + Hybrid RBF · SHA-Protected Investor Exit · ~3.01× MOIC · First Revenue by M9

Window of Opportunity

Machine order placement is the critical path. Every week of delay = direct lost production revenue.

Investment Ask

৳18M

One-time · Full CAPEX

Deal Terms at a Glance

Equity Stake

25%

Post-money ৳72M

Royalty Rate

5%

From Month 9 · ৳21.6M cap

Primary MOIC

~3.01×

At equity exit · 25% equity · SHA-protected

Clawback Trigger

5%

Equity dilution post-royalty cap

M&A Exit Target

৳192M+

Year 4 Strategic Acquisition

Why Now — Investment Thesis

✔ Market Timing

Bangladesh modest fashion domestic TAM ৳1.02B with zero CNC-precision incumbents. First-mover advantage window is 12–18 months before Chinese imports close the gap.

✔ Validated Demand

Day-0 LOIs from 3 anchor buyers representing ৳4.2M committed pre-revenue. Pipeline covers Month 1–6 production fully without cold outreach.

✔ Technology Moat

4× Dahao A18 CNC embroidery units deliver 64.3% gross margin — 3× above traditional manual-stitch operators. Proprietary design IP and pattern library compounds this moat monthly.

⚡ Urgency Factor

Machine procurement lead time is 14–18 weeks. Every week of capital delay = direct production month lost. Current order window closes Q3 2026.

Investor Return Summary

Royalty Stream

৳21.6M

5% RBF · Capped at 120% · From M9

Equity Exit Value

৳48M+

25% of ৳192M+ M&A valuation · Y4

Combined MOIC

~3.01×

On ৳18M investment · 48-month horizon

Execution Milestones

M0

Close

Capital secured · Legal docs signed

M1–M3

Setup

Factory fit-out · Machine order placed

M4–M8

Ramp

Installation · Staff · Pilot orders

M9+

Revenue

First RBF payment · Full production

Y4

Exit

Strategic M&A · ৳192M+ valuation

Shareholder Agreement — Key Governance Terms

🔒 Founder Vesting

Founder's 75% subject to 4-year vesting with 1-year cliff. If Founder departs before Y1 cliff: equity reverts to ESOP pool. Post-cliff: 1/36 monthly vesting. Protects investor against early departure.

🤝 Drag-Along / Tag-Along

Drag-along: If Founder secures M&A at ≥2× investor MOIC, investor must join sale. Tag-along: Investor may co-sell alongside Founder in any secondary transaction at same price/terms.

📋 ROFR / Anti-Dilution

Right of First Refusal: investor has 30-day ROFR on any new equity issuance. Pro-rata participation right in Phase 2 round. Broad-based weighted-average anti-dilution on future down-rounds.

💰 Founder Salary Lock

M1–M6: ৳0. M7+: ৳35,000/mo (SHA-locked). Cap at ৳60,000/mo through Y3. Any increase above cap requires investor board approval.

📊 Information Rights

Monthly: P&L, cash position, stitch volume. Quarterly: Full financials + royalty statement. Annual: Audited accounts. Escrow agent access to tranche disbursement records at all times.

🏦 Board / Consent Rights

Investor board seat (or observer right). Investor consent required for: new equity issuance, asset sale >৳5M, key person hire/fire, dividend distribution pre-royalty-cap.

All SHA terms to be finalised with legal counsel post-RJSC incorporation. Above terms represent founder's proposed framework — subject to negotiation at term sheet stage.

Next Steps

Investor Action Plan

01. Review full memorandum & financial model
02. Schedule due diligence call with founding team
03. Review term sheet & SHA draft
04. Execute investment & wire capital

Primary Contact

Anik Islam Sunny

Founder & CEO · AURAQ Apparel & Embellishment

✉ founder@goauraq.com

🌐 goauraq.com

💬 WhatsApp & Telegram: 01888675871

📍 Dhaka, Bangladesh

The Integral of Infinity

AURAQ

Precision embroidery. Engineered margins. Exceptional returns. A single ৳18M commitment builds Bangladesh's first CNC-automated embellishment powerhouse — with a clear path to ৳192M+ strategic exit in 48 months.

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