Canadian Islamic Fintech Manzil Launches US Investment Platform, Eyes North American Neobank Dominance

Toronto-based startup targets underserved Muslim American market with sharia-compliant investment app after acquiring US competitor.

Manzil, a Toronto-based Islamic fintech startup, has officially launched its investment platform in the United States through the debut of Manzil Invest USA, marking a significant expansion into the American market as the company pursues its ambitious goal of becoming "the North American Islamic neobank." The mobile investment app, now available on iOS and Android, offers sharia-compliant investment options explicitly tailored for Muslim Americans, a demographic that company executives describe as underserved by traditional financial institutions despite their substantial purchasing power.

The US launch follows Manzil's strategic acquisition of American peer Aghaz Investments last year, which provided the Canadian company with essential US market infrastructure, including a team, technology platform, and crucially, a license with the Securities and Exchange Commission as a Registered Investment Advisor. Over the past eight months, Manzil has transformed these acquired assets into a refined, rebranded mobile investment application that adheres to Islamic law principles while targeting what executives characterize as an untapped market opportunity.

Building the "Halal Wealthsimple" Across Borders

Founded in 2017, Manzil has positioned itself as the Islamic equivalent of popular investment platforms like Wealthsimple, focusing exclusively on financial products that comply with halal requirements and Islamic ethical principles. The company's mission centers on helping Muslim Canadians and Americans build wealth in ways that align with their religious obligations, addressing a significant gap in the traditional financial services sector.

"We want to be the North American player in this space. That's really our moat, is to be the North American Islamic neobank and focus on this demographic group that's not only the fastest-growing, but also the second-largest religious base across the board."

Mohamad Sawwaf, Manzil's co-founder and group CEO, emphasized the company's strategic focus on serving Muslim communities across North America in an exclusive interview with BetaKit. His comments highlight the significant market opportunity that Manzil sees in catering to religious requirements that traditional financial institutions have largely overlooked.

The company's approach addresses fundamental Islamic financial principles that prohibit Muslims from investing in companies or products connected to alcohol, tobacco, gambling, or weapons. Additionally, Islamic law forbids the use of financial services that involve receiving or paying interest, creating substantial barriers for observant Muslims seeking to participate in conventional investment markets.

Strategic US Market Entry Through Acquisition

Manzil's expansion strategy demonstrates sophisticated market entry planning through its acquisition of Aghaz Investments. This purchase provided immediate access to the complex US regulatory environment and established operational infrastructure that would have taken years to develop independently.

Khurram Agha, who previously founded and led Aghaz as CEO and now serves as Manzil's chief investment officer and head of US operations, brings deep expertise in serving Muslim American investors. Agha's transition to Manzil represents continuity for existing Aghaz customers while providing the Canadian company with proven leadership in the American market.

The acquisition included not only human capital and technology but also the critical SEC registration as a Registered Investment Advisor, enabling Manzil to operate across all 50 states. This regulatory foundation provides Manzil with significantly more operational flexibility than its Canadian operations, where the company must navigate what executives describe as a more cumbersome regulatory environment.

Technology Platform and Investment Offerings

Manzil Invest USA operates through a strategic partnership with Alpaca, a Financial Industry Regulatory Authority-registered broker-dealer, providing the technological backbone for the platform's investment services. This partnership enables Manzil to offer streamlined account opening processes, with customers able to begin investing within five to ten minutes, according to company executives.

The platform provides access to a carefully curated selection of halal stocks and exchange-traded funds that have been screened according to Islamic and ethical investing principles. Manzil employs both the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards and the Quaker-created American Friends Screening Criteria to ensure compliance with religious requirements.

"Having access to more liquid investment types, taking away the complexity of it, that's what this demographic needs, and that's the market that we're really targeting."

Agha's observation reflects the platform's focus on simplifying investment processes for Muslim Americans who have historically relied heavily on real estate as their primary savings vehicle. The platform's automated investment features help clients diversify their portfolios based on risk tolerance and performance targets while maintaining religious compliance.

Market Opportunity and Demographics

The Muslim American market represents a significant and growing opportunity for financial services companies. Agha noted that Muslim Americans possess "a lot of purchasing power," yet remain underserved by existing fintech investment platforms despite the availability of various sharia-compliant funds in the US market.

Manzil's target demographic skews toward younger, tech-savvy users between the ages of 18 and 45, mirroring the company's successful customer base in Canada. This demographic alignment suggests strong potential for mobile-first investment platforms that can effectively serve digitally native Muslim Americans seeking religiously compliant financial services.

The company's executives argue that while the US market includes numerous sharia-compliant investment funds, few fintech platforms specifically cater to Muslim investors' needs with user-friendly technology and comprehensive educational resources. This gap represents what Sawwaf characterizes as "still an untapped market" despite the large Muslim population in the United States.

Regulatory Advantages and Operational Flexibility

Manzil's US operations benefit from what executives describe as superior regulatory flexibility compared to their Canadian business. In the United States, Manzil owns its complete technology stack and maintains licensing to operate across all states, providing greater control over product development and customer experience.

This contrasts sharply with the company's Canadian operations, where Manzil partners with Toronto-based business-to-business wealth management platform OneVest to oversee regulatory compliance. The Canadian regulatory environment requires more complex navigation and longer timelines for product launches and licensing across provinces.

"Having the ability to be able to launch a program like this in less than a year is not necessarily unprecedented, but would not be able to be done equivalently in Canada."

Sawwaf's assessment of the regulatory environment highlights how the US market's structure enabled the rapid deployment of Manzil's investment platform. He argued that achieving equivalent functionality in Canada would require years of licensing processes and technology development, making the US expansion particularly attractive from an operational perspective.

Reverse Expansion Strategy

Manzil plans to implement what Sawwaf describes as "a similar playbook" to its Canadian strategy but "in reverse" for the US market. While the company began with halal mortgages in Canada before expanding to investments and wealth management, the US approach starts with investment services as a foundation for broader financial offerings.

The company intends to leverage assets under management attracted through its investment platform to expand into wills and mortgages over time. Eventually, Manzil plans to launch "a core banking strategy" that would include checking and savings accounts, moving toward its goal of becoming a comprehensive Islamic neobank.

This strategic sequencing reflects lessons learned from the Canadian market while adapting to different regulatory and competitive conditions in the United States. The approach suggests confidence in the investment platform's ability to serve as an effective customer acquisition tool for additional financial services.

Canadian Market Success and Growth Trajectory

Manzil's expansion into the United States builds on demonstrated success in its home Canadian market. Earlier in 2025, the company extended its mortgage offerings to Quebec, joining its existing presence in British Columbia, Alberta, and Ontario. This geographic expansion within Canada demonstrates the company's ability to navigate complex provincial regulatory requirements.

The company achieved a significant milestone by crossing $100 million CAD in assets under management, indicating substantial customer adoption and trust in Manzil's financial products. This achievement provides credibility for the company's expansion efforts and suggests strong demand for Islamic financial services in North America.

Sawwaf reported that Manzil remains well-capitalized and expects to reach break-even profitability by the end of 2025. This financial trajectory suggests sustainable business model execution and positions the company for continued expansion without immediate pressure for additional funding rounds.

Educational Component and Financial Literacy

Beyond investment services, Manzil Invest USA incorporates educational tools designed to aid decision-making and financial planning for Muslim American customers. This educational focus addresses a critical gap in financial literacy resources specifically tailored to Islamic financial principles and halal investing requirements.

The platform's educational components help users understand complex religious compliance requirements while building confidence in investment decisions. This approach recognizes that many Muslim Americans may be unfamiliar with halal investment options or uncertain about how to evaluate religious compliance in financial products.

By combining investment services with education, Manzil positions itself as more than a transactional platform, instead serving as a comprehensive resource for Muslim Americans seeking to align their financial decisions with their religious values.

Competitive Landscape and Market Positioning

While the US market includes various sharia-compliant investment funds and some specialized financial services for Muslim Americans, Manzil executives argue that few companies have successfully combined user-friendly technology with comprehensive Islamic financial services. This positioning suggests an opportunity for Manzil to establish market leadership through superior customer experience and religious compliance.

The company's focus on mobile-first design and streamlined user experience differentiates it from traditional Islamic financial institutions that may offer compliant products but lack modern technology platforms. This technological advantage could prove crucial in attracting younger Muslim American customers who expect seamless digital experiences.

Manzil's comprehensive approach, spanning investments, mortgages, wills, and eventually banking services, also distinguishes it from competitors that may focus on single product categories. This breadth suggests potential for higher customer lifetime value and stronger competitive moats once established.

Future Expansion Plans and Product Development

Agha described Manzil's initial US launch as "a springboard" for broader expansion of investment offerings and wealth management services. The company plans to introduce retirement accounts "very soon," addressing a critical need for Muslim Americans seeking halal options for long-term savings and retirement planning.

The retirement account offering represents a natural extension of Manzil's investment platform while addressing specific regulatory and tax advantages available through qualified retirement plans. This expansion could significantly increase assets under management while providing customers with comprehensive financial planning capabilities.

Beyond retirement accounts, Manzil's roadmap includes expansion into additional wealth management services, wills and estate planning, and eventually mortgage products. This progression mirrors the company's successful Canadian strategy while adapting to US market conditions and regulatory requirements.

Technology Infrastructure and Scalability

Manzil's partnership with Alpaca provides technological infrastructure capable of supporting significant growth in customer base and assets under management. The broker-dealer relationship ensures regulatory compliance while enabling Manzil to focus on customer experience and product development rather than complex financial infrastructure.

The company's ownership of its technology stack in the US market provides flexibility for rapid product iteration and customization based on customer feedback. This technological control contrasts with more constrained partnership arrangements and suggests potential for competitive advantages through superior user experience.

The mobile-first approach aligns with broader fintech industry trends while specifically serving Manzil's target demographic of younger, tech-savvy Muslim Americans. This strategic focus on mobile technology could prove crucial for customer acquisition and engagement in competitive US markets.

Regulatory Compliance and Religious Oversight

Manzil's investment screening process employs established Islamic financial standards to ensure religious compliance across all investment options. The use of AAOIFI standards provides credibility with religious authorities, while the American Friends Screening Criteria adds additional ethical considerations that may appeal to socially conscious investors.

This dual-standard approach demonstrates Manzil's commitment to rigorous religious compliance while potentially attracting customers interested in ethical investing beyond specifically Islamic requirements. The comprehensive screening process could serve as a competitive advantage in building trust with religiously observant customers.

The company's focus on transparency in religious compliance and educational resources about Islamic financial principles helps build customer confidence while differentiating Manzil from competitors that may offer halal products without extensive religious education and support.

Building North America's Premier Islamic Neobank

Manzil's US expansion represents a crucial step toward achieving its ambitious goal of becoming the dominant Islamic neobank across North America. The company's strategic approach, combining proven Canadian success with adapted US market strategies, positions it well for continued growth and market leadership.

The timing of Manzil's expansion coincides with growing awareness of Islamic finance principles and increasing demand for religiously compliant financial services among Muslim Americans. This market timing, combined with superior technology and comprehensive service offerings, suggests strong potential for sustained growth and market capture.

As Manzil continues executing its expansion strategy, the company's success will likely influence broader financial services industry approaches to serving religious communities and specialized demographic segments. The platform's growth trajectory and customer adoption rates will serve as important indicators of market demand for Islamic fintech services and the viability of religious-focused financial technology companies in competitive North American markets.