An Islamic financing start-up has raised CA$1.15 million (US$875,344) in seed financing setting the foundation for the Toronto-based company to launch in the third quarter of 2019.
Founded in 2017 by Mohamad Sawwaf and Sam Holako, Manzil is a start-up focusing on Shariah compliant financing, investment and insurance. The seed round would enable the privately-held company to further develop its 25-year fixed-rate Murabahah (cost plus financing) mortgage product, grow its platform and enhance its technology.
“We are very excited to be moving closer to commencing operations and fulfilling our current mortgage waitlist which is now at CA$200 million (US$152.23 million) and growing at CA$1 – 2 million (US$761,168 – 1.52 million) weekly. This funding round gives us the ability to address this unmet gap in the Canadian mortgage market, and is not only an important milestone for Manzil, but also for Canada at large as we begin to lay the foundation within the Canadian financial industry to position Toronto as the Islamic financial hub of North America,” shared Mohamad, who is also CEO.
Islamic financial services in Canada, home to 1.3 million Muslims, is largely dominated by the mortgage activities. Along with digital investment manager Wealthsimple, Manzil is one of the few fintech start-ups in the country to cater to the Muslim population, expected to double in size over the next 10 years, bringing with it US$50 billion in market opportunities.