Manzil Market Metrics

Shaan Puri shares insights about Manzil, a startup focusing on Islamic financing in North America. The company has developed a Sharia-compliant mortgage system for Muslims who want to buy homes without compromising their religious beliefs.

• Market Opportunity:

  • 22 million Muslims in America
  • Working models exist in UK, Africa, and Indonesia
  • No established solution in US and Canada
  • Target demographic is "super prime" applicants (doctors, lawyers with good jobs)

• Business Model:

  • Two-sided marketplace:
    • Investors providing capital for mortgages
    • Borrowers seeking Halal financing
  • Average mortgage size: $500,000
  • Each mortgage generates ~$20,000 annual revenue in fees

• Current Traction:

  • $10M total capital committed
  • $1.2M in bank
  • ~1,000 applicants in pipeline
  • Current capacity to issue about 20 mortgages

• Regulatory & Compliance:

  • Spent 1-2 years getting compliance framework
  • Received approval from religious leaders for Sharia compliance
  • Operating as a challenger bank, partnering with established banks
  • Not operating as a traditional bank due to regulatory complexity

• Religious Context:

  • Traditional interest (riba) is forbidden in Islamic faith
  • Money viewed as having no inherent value
  • Requires shared risk/return model instead of traditional interest
  • Similar principles exist in other religions (including Catholicism)