GreenSky has been consistently preparing for its initial public offering. It offers consumer loans at the point of sale system. As a result, it directly reaches out to the consumers. The company could be valued at as high as $ 14 billion. Moreover, it is a Fintech company and therefore, the hype will be closely watched as well. Total 34 million shares will be sold by the company. The price of the shares will be $ 21-$ 23. It remains to be seen how they go on listing. The total amount of money which it will be raising will be around $ 784 million.
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Niche catering in home improvement and healthcare markets:
It is basically targeting the users who are buying goods related to home improvement as well as healthcare. As a result, it will be providing them with proper loans at the point of sale. This will ensure that users will be able to shop quite easily without having to go for third-party loans.
Tie-ups with banks:
It is also consistently working with banks in order to make it easier for them to disperse the loans as well. Also, it is tying up with credit card departments of various banks so that they are able to provide swift loans as well. Also, they are currently only providing loans to customers who have a high credit score. As a result, it is easier for them to repay the loans as well. This is ensuring that they do not have to deal with a lot of non-performing assets as well. They are also getting into mortgage financing.
They are not financing in each and every type of loans and each and every type of niche. They are taking a narrow approach towards the niche which they choose. That is why they are taking it slow for now. Till the time, they are able to gain more experience in this field, they are taking it really slow. This is the reason why growth is pretty safe but it is in the same niche market.
Consistent Growth:
The net income of the company was around $ 100 million in last year. The total revenue of the company was around $ 425 million. As a result, it is growing but it is growing in the same niche market. It is trying to take a niche approach so that it gets to know the industry more quickly and in a much more detailed manner before expanding to other industries.
Reduced marketing spend:
The company has spent very little amount of money in marketing. The amount spent is just $ 2.2 million. As a result, its gross profit margin is not impacted by a significant amount.
Trendsetter:
It is one of the few IPOs in the Fintech industry. As a result, it is helping set the trend for the other Fintech companies to raise money with the help of an IPO.
Keeping all of these factors in mind, it is worth it to look at this IPO over a longer frame of time. Tags: greensky web pay, myloan greensky credit, greensky credit application, greensky credit reviews, greensky online bill payment, greensky paybill
Update:
GreenSky, Online Lending Unicorn, Raises Over $800 Million In IPO
GreenSky, which facilitates loans for home improvement projects via a smartphone app and has quietly become one of the largest financial technology companies in the country, made its public debut on Thursday.
The Atlanta-based company saw shares end the day at $23.36, which was 1.5% higher than the $23 set on Wednesday evening. GreenSky had originally priced shares between $21 and $23 apiece. It also ultimately sold 38 million shares, above its original expectations to sell 34 million shares.
GreenSky raised $874 million in going public and plans to use the proceeds to allow its management team and investors take some chips off the table. “We’ve been building this company for the last 12 years and investors and the original founding team has sold a relatively small portion of ownership,” says cofounder and CEO David Zalik in a phone interview. He personally held onto a majority of the company, giving him a net worth of $2.5 billion, through Thursday.
The company has quickly and quietly become one of the largest (and most profitable) financial technology upstarts in the nation. It was founded by serial entrepreneur and math whiz Zalik in 2006 and offers loans of up to $65,000 on home improvement projects like a new roof or a pool. It’s a classic digital-era middleman, relying on contractors to pitch the loans and banks to fund them, and since its inception has sat in the middle of $12 billion in loans to 1.7 million consumers.
Before going public, it raised $560 million in financing from an all-star investor roster including the likes of PIMCO, TPG and ICONIQ Capital. After its last infusion of funding in December, it fetched a valuation of $4.5 billion. Investors have been attracted to the company’s track record of profitability, which has lasted for the previous six years and counting. In 2017, it recorded a profit of $139 million on $326 million in revenue, according to a regulatory filing. That’s up from a profit of $124 million and revenue of $264 million in 2016. Source: Forbes
