Toronto-based Halal-certified FinTech startup Manzil has launched its first wealth management solution through subsidiary Manzil Wealth following its acquisition of Winnipeg-based Canadian Islamic Wealth.
Canadian Islamic Wealth is a fellow Halal investment and financial services provider. The announcement of the deal, which closed in September, comes just weeks after Manzil announced it had acquired Aghaz Investments as part of the startup’s expansion to the United States.
“This platform sets a new standard for Halal wealth management.”
Manzil CEO and co-founder Mohamad Sawwaf declined to disclose the value of the deal, but told BetaKit that Manzil has acquired all of Canadian Islamic Wealth’s 300 clients, as well as the team, which is moving to Manzil Wealth.
Jesse Reitberger, founder of Canadian Islamic Wealth, is joining Manzil Wealth as senior wealth advisor as a result of the deal, and will lead Manzil Wealth’s strategy.
“Being part of the Manzil Wealth platform is a game-changer for our clients and advisors,” Reitberger said in a statement. “This partnership allows us to offer a wider range of Sharia-compliant services while staying true to our mission of ethical investing.”
Launched in 2020 initially as a Halal mortgage platform, Manzil has expanded its FinTech offerings significantly in the last four years. Today, the startup offers a range of financial services tailored to the Muslim community, who prioritize ethical and interest-free banking solutions in line with Sharia, or Islamic law.
Each of Manzil’s products are reviewed by a Sharia supervisory board, internal and external Sharia auditors, and a third-party Sharia advisory firm.
In a statement sent to BetaKit, Sawwaf claimed that Manzil has successfully financed over $75 million in Halal mortgages since inception.
Manzil Wealth is being offered to financial advisors in Canada. The software platform will offer Sharia-compliant financial products, such as Halal investments, mortgages, and financial planning training and support, as well as FinTech solutions aimed to simplify the client management process.
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“The launch of the Manzil Wealth platform and the acquisition of Canadian Islamic Wealth represent a pivotal moment in Islamic finance in Canada,” Sawwaf said in a statement. “This platform sets a new standard for Halal wealth management, providing advisors and clients with the resources they need to achieve financial success while staying true to their values.”
Much of Manzil’s expansion to date has been fuelled by partnerships and acquisitions. In 2020, the startup partnered with FinTech firm Koho to provide a Halal prepaid Visa card, and in 2022, acquired Muslim Will to expand into the estate planning space. Earlier this month, Manzil announced it had acquired Aghaz Investments to make its investment platform offering available for US retail investors.
Sawwaf told BetaKit he sees mergers and acquisitions (M&A) as “critical to ensure the long-term viability of the Islamic finance industry in North America,” noting that smaller players often require financial and non-financial resources to maintain their viability and long-term sustainability.
“M&A plays a pivotal role in this strategy by enabling Manzil to integrate complementary services, broaden its product portfolio, and enhance its market presence,” Sawwaf added.
Feature image courtesy Manzil via Facebook.
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