5 Reasons Why GreenSky Could Be Worth $4.4B At IPO

May 16 20:05 2018 Print This Article

GreenSky is a digital lending platform that partners with home contractors, specialty retailers, and healthcare professionals to offer consumers point-of-sale financing. In 2017, the Atlanta-based fintech unicorn did $326M in total revenue.

GreenSky plans to raise $750M in an upcoming IPO that would value the lending platform around $4.35B, on par with the company’s most recent valuation in the private market. While other alternative lenders such as Lending Club and OnDeck have floundered in the public markets, here are five reasons why GreenSky’s IPO could be a fintech winner.

1. GreenSky takes a platform approach

GreenSky has scaled a model in which it essentially acts as a middleman for loans. One the one hand, it partners with banks, which pay GreenSky a percentage of loans generated, and, on the other hand, works with home remodeling contractors, who actively market GreenSky’s solution to homeowners. These contractors will also pay a percentage of the loan amount to GreenSky. Home Depot is a prominent partner of the digital lending platform.

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CB Insights analyzes data on private companies in emerging industries to provide predictive intelligence on company health and strategy, investor performance and technology adoption trends. They aggregate and analyze massive amounts of data and use machine learning, algorithms and data visualization to help corporations replace search engines, and corporate financial institutes, so they can answer massive strategic questions using probability not punditry. With backing from the National Science Foundation and venture capital investors, CB Insights mines terabytes of data and knowledge contained in patents, venture capital financings, M&A transactions, hiring, startup and investor websites, news sentiment, social media chatter, hiring activity and more.

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