Toronto-based Manzil, which offers Halal-certified investment and home financing solutions designed for Muslims, has expanded to the United States (US) through the acquisition of American FinTech firm Aghaz Investments.
Acquisition will help Manzil launch ETFs and explore other new investment products.
Manzil said the acquisition includes Aghaz’s technology platform and registration with the U.S. Securities and Exchange Commission as a Registered Investment Advisor, which will make its investment platform offering available for US retail investors. The purchase price was not disclosed.
Much like Manzil, Aghaz focused on providing Halal-certified financial services to Muslims. Manzil CEO Mohamad Sawwaf has told BetaKit in the past that the need to maintain religious observance within Islam—which forbids earning or paying interest—means that many Muslims choose not to take part in interest-based financial systems or products, such as mortgages. Manzil’s products are reviewed by a Shariah (Islamic law) supervisory board, internal and external Shariah auditors, and a third-party Shariah advisory firm.
Following the acquisition, Aghaz will operate independently under the Manzil banner, Sawwaf told BetaKit in an email statement. He added that Aghaz’s outsourced tech team, as well as founder and CEO Khurram Agha, will be joining Manzil. Agha will act as the head of Manzil Invest USA.
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“We will leverage Manzil’s expertise and our regulatory foundation to introduce new and innovative investment products that meet the needs of US-based Muslims,” Agha said in a statement.
Since officially launching in 2020 as a Halal mortgage platform, Manzil has partnered with Toronto-based FinTech firm Koho to provide a Halal prepaid Visa card, raised just over $3.5 million CAD in venture funding, expanded into the estate space through the acquisition of Muslim Will, and launched its investment platform. This past summer, Manzil announced it had successfully financed over $50 million CAD in Halal mortgages since its inception.
Sawwaf told BetaKit that the Aghaz acquisition will also help Manzil launch ETFs, which was part of the company’s plan for 2025, explore other new investment products, and build a clientele that it can eventually cross-sell its mortgage and banking offerings to.
Manzil is also expanding the availability of its mortgage and wills offerings in Canada. Sawwaf said the company launched mortgages in British Columbia last month and intends to do the same in Québec by late 2024 or early 2025. Meanwhile, Manzil Wills should become available in Alberta and British Columbia by the end of the year.
Feature image courtesy Manzil.