Daivd Zalik, founder and CEO of GreenSky Credit, has managed to build a fortune estimated at $2.5 billion. He has accumulated all of this wealth under the radar with an innovative financial services tech startup. His company, GreenSky Credit, operates through a smartphone app. Affluent homeowners log into the app to see what kind of home improvement loan that they can secure. Loan options pop up immediately and approval happens just as quickly.
GreenSky Credit works with over 17,000 contractors who perform all of the renovations. The contractors give him 6% of the loan amount and then Zalik takes that loan to the bank. the bank assumes all of the risks and kicks the tech startup 1% of the loan amount, as well.
Forbes has estimated $250 million in revenue in 2017 alone. Moody’s has projected $400 million in revenue in 2018. And this financial tech company has stayed under control of Zalik for its entirety. But the Wall Street Journal has just discovered that Zalik has confidentially filed for an IPO with the Securities and Exchange Commission.
The IPO has a potential to drum up $1 to $5 billion. However, Zalik could still rescind his IPO in order to protect his brainchild. After all, this high school dropout hatched the idea for GreenSky Credit back when he was a teenager.
The reclusive billionaire has managed to figure out a way to connect homeowners with lenders without assuming any risk. He’s the middleman and doesn’t own a thing. Contractors do the work while banks assume the risk. That’s how Zalik has used GreenSky Credit to amass a $2.5 billion fortune.
And this flies in the face of standard Silicone Valley business protocol. Other massive companies like Uber and Stripe remain private so long as they have the quarterly earnings to fuel the business operations. And it’s rather en vogue for young tech startups to fight against the establishment by avoiding banks altogether.
But Zalik and GreenSky Credit have embraced banks. Zalik has also worked hard throughout his life to avoid diluting his ownership stake. It’ll be interesting where this IPO takes him.