The Truth Behind Our Model

At Zaylo, we don’t self-declare halal. Our model, agreements, and review process are all verified and continuously reviewed by certified Shariah Advisors. These advisors have full visibility into:

• Every type of agreement used between an MSME and its own capital contributor
• How profits and losses are calculated
• What businesses are screened or rejected

We follow AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) guidelines, the global gold standard for halal finance.

Yes, 100%.

There are no fixed interest, no guaranteed returns, and no lending. Zaylo follows a partnership model, not a lending model. This is not a loan; it is a Shariah-compliant commercial participation arrangement between an MSME and its own capital contributor, tied to a specific trade or project.

• • If the cycle is profitable, the commercial outcome is shared with you.
• • If the cycle results in a loss, that loss is shared proportionally too.

This is what makes it riba-free (interest-free) and Shariah-valid: the outcome depends on real business performance, not pre-decided amounts.

Yes, over 150 real-world trade cycles were completed during a manual pilot phase, run prior to and outside the current Platform, ahead of introducing full automation. It's genuine early validation, but it didn't run through the automated escrow and settlement infrastructure this Platform is designed around. We're transparent about that distinction rather than blur it.

We don't have a confirmed public launch date yet. Full participation begins only once our banking/escrow partnerships are finalized and formal agreements are signed and disclosed. Join the waitlist to be notified the moment that changes. We won't commit to a specific date before it's real.

Zaylo is operated by Falzin Technologies Private Limited, registered with the Ministry of Corporate Affairs, Government of India, under the object classification "Information Technology and Computer Service Activities."

Per its Memorandum of Association, the company is legally restricted from banking or investment activity: it cannot accept deposits, lend money, provide credit, pool or manage any party's funds, operate as a bank or NBFC, or run a collective investment scheme.

Zaylo operates strictly as a Software-as-a-Service (SaaS) provider. It does not introduce, match, or recommend capital contributors to MSMEs, and it does not hold or control any party's funds at any point. All money movement is designed to be executed by independent, regulated third-party payment and escrow partners, instructed under agreements between the MSME and its own capital contributor. We will name these partners on the Platform once finalized.

Zaylo charges a fee only to the MSME for using the platform, never to the capital contributor, in any form.

MSMEs can choose how they pay:

• An upfront subscription for full platform access, or
• If they'd rather not pay upfront, a transaction-based fee applied per cycle instead

These are software fees for using Zaylo's platform, not a commission on the underlying commercial arrangement, and never a share of, or fee based on, the commercial outcome of any cycle. Exact rates for both options are still being finalized and will be confirmed and clearly disclosed before any live use of the platform begins.

Yes. Each cycle is a separate, standalone bilateral commercial participation agreement between the MSME and its own capital contributor. Zaylo doesn't pool or combine these into a managed portfolio. An MSME can run as many separate, formalized cycles with its known contributors as it needs.

Zaylo's software is built for MSMEs in India that:

• ✔Operate in ethical industries (no alcohol, gambling, riba-based services, speculation, etc.)
• ✔Have real business operations (trading, manufacturing, services)
• ✔Are open to sharing commercial outcome reports and transparent working capital cycles

As a rough estimate: KYC and verification typically take around 2 days, and a funding decision follows within about 5 days. These are indicative timelines, not fixed commitments, and may vary by case.

Because this is a commercial participation arrangement, not a loan, there's no personal guarantee or collateral at risk, and no interest or penalty accrues if a cycle performs below expectations.

The commercial outcome for that cycle is calculated from your business's actual performance and shared with its capital contributor accordingly: if the cycle shows no profit, none is shared. Delayed or underperforming cycles are reviewed case by case by Zaylo's compliance team; see our Grievance Redressal Policy if you ever need to raise a concern.

This is one of the biggest blind spots in informal family and trade capital arrangements: verbal understandings don't survive a change of hands, and successors are often left with no record of who contributed what, on what terms. Because Zaylo formalizes each cycle as a signed digital agreement with a documented trail of contributions, disbursements, and settlements, that record exists independently of any one person's memory. It stays available to the MSME's business and its capital contributor even if ownership or management changes.

Contributions from an NRI or overseas family member bring their own paperwork trail, the kind banks and auditors ask for later, under FEMA and related regulations. Zaylo doesn't handle NRI compliance for you, but the software is designed to generate a clear, timestamped digital record of the agreement and the contribution as part of formalizing the cycle, the kind of documentation that's otherwise missing when these arrangements stay informal. Always confirm your specific FEMA and tax obligations with a qualified advisor.

Here’s how Zaylo ensures trust and accountability:

• 🛡️Business Verification: Every MSME using Zaylo completes KYC, GST verification, address verification, and financial screening as part of onboarding the software. This is a baseline check built into the platform, not Zaylo vetting the relationship on a contributor's behalf.
• 🛡️Capital Control: Contributor funds are designed to sit in a bank-held Capital Escrow, never released directly to the business owner, and to be disbursed only to pre-approved vendors once Zaylo's system automatically validates the request against the signed contract. Zaylo has no manual override on this. The bank executes the release, not us. Revenue the business earns from its own customers is designed to be tracked separately and never mixed with contributor funds.
• 🛡️Cycle Tracking: The platform is designed so each deal has a live status inside the app, letting the MSME's own capital contributor see updates.
• 🛡️Shariah & Audit Oversight: Our Shariah Advisor and compliance partner are set up to monitor deal flow and prevent misuse.

Here's the mechanism step by step, deliberately without a rupee example that assumes a profit figure, since no outcome is ever fixed or guaranteed:

• Deployment: your contribution is designed to move into a bank-held Capital Escrow Account dedicated to that MSME, not into the business owner's hands.
• The cycle: the MSME draws only pre-approved vendor payments from that escrow for its verified trade activity, for the agreed cycle term (typically ~30 days).
• Revenue tracking: customer payments the business earns are tracked separately and cross-checked against the business's own bank statements.
• Settlement: at cycle end, the commercial outcome is calculated from the business's actual performance and settled to you per the signed agreement: your capital, plus or minus your share of that outcome.

See "Why won't you share average, highest, or lowest historical returns?" below for why we don't attach a specific number to this example.

There are no profit or capital guarantees, because guarantees in partnership would make it a loan, not halal finance.

However, we minimize risk ethically, not artificially:

• Each business is screened for halal compliance, performance history, and genuine working capital need.
• Zaylo only allows businesses with strong trade history and verified accounts.
• Each cycle is short (around 1 month), so exposure is limited.
• Losses, if they occur, are shared fairly and transparently.

No. Because the capital arrangement is a private agreement between an MSME and the capital contributor it already knows, the amount is whatever the two of them agree on. Zaylo's software doesn't impose a minimum or maximum.

Because publishing a number, even a historical average, reads as an implied benchmark of what to expect, which conflicts with Islamic finance principles and the fact that every cycle's outcome depends entirely on that specific business's real performance. What we do share instead: whether outcomes have generally been positive (see above), and each cycle's actual performance report is designed to be visible to that cycle's own capital contributor directly.

Not under normal circumstances: participation runs for the agreed cycle term. The one exception: if the MSME breaches the commercial participation agreement, and Zaylo confirms the breach, you can exit that specific arrangement.

Yes, transparency is non-negotiable in our model.

For every completed business cycle:

• You’ll see a summary report of the actual business performance (revenue, expenses, and net profit).
• The platform is designed to track revenue in real time and cross-check it monthly against the business’s own bank statements (with their consent), not just self-reported figures.

Yes, before any live participation, you'll be able to review the actual Musharakah Partnership Agreement (between you and the MSME) and the Wakalah Agreement (between you and Zaylo) in full, in advance of signing anything. Both are being finalized with our legal advisors; we intentionally don't publish a placeholder version, to avoid any confusion with the final terms.