Bolt CEO Ryan Breslow Addresses $30M Loan & Announces 'Super App'

Bolt CEO Addresses Controversial Loan and Future Plans

Ryan Breslow, the co-founder of Bolt who recently resumed his position as CEO, publicly discussed the $30 million personal loan he secured from his company. This loan was the central point of contention in previous legal disputes and ultimately contributed to his initial departure from the leadership role.

Details of the Loan and Legal Battle

The legal challenges surrounding the loan commenced in 2023 when Activant, a Bolt investor, initiated a lawsuit against Breslow. Activant asserted that Breslow had burdened the company with $30 million in debt through the loan and subsequent default, utilizing company assets for repayment.

Ultimately, the dispute was resolved through a settlement. Bolt agreed to repurchase Activant’s shares for $37 million in the preceding year.

Breslow’s Defense and Rationale

Speaking at the Fintech Meetup in Las Vegas, Breslow presented a defense of the loan, characterizing it as a demonstration of commitment to Bolt, rather than the alleged self-serving action outlined in the Activant lawsuit.

He explained that he chose to take out the loan instead of selling his company stock through a secondaries transaction. Furthermore, he stated that the loan received unanimous approval from Bolt’s board of directors.

“The decision was made with Bolt’s best interests in mind,” Breslow stated. “I opted for the loan to avoid selling any significant portion of my shares, signaling my strong belief in the company’s potential.”

Expectations for Repayment and Subsequent Events

Breslow indicated he anticipated sufficient time to repay the loan, intending to do so following Bolt’s initial public offering (IPO). However, after relinquishing his role as CEO, the board requested immediate repayment, a move he perceived as adversarial.

Past Allegations and Recent Admissions

Breslow previously stepped down as CEO in early 2022. In the intervening period, he faced accusations of misleading investors and violating securities regulations by exaggerating key performance indicators during fundraising efforts.

On Monday, Breslow acknowledged making “a considerable number of errors” but clarified that these were not the specific accusations leveled against him. He identified his primary misstep as granting equity to individuals he lacked sufficient familiarity with.

Future Plans: The "Everything App"

Breslow also announced Bolt’s forthcoming launch of an “everything app.” This application will consolidate one-click checkout functionality for a wide range of services, encompassing cryptocurrency and various financial products, and is expected to become available “very soon.”

Bolt is aiming to create a unified platform for streamlined transactions.

Here's a summary of key points:

• Loan Amount: $30 million
• Settlement with Activant: $37 million
• Future Project: An “everything app” integrating one-click checkouts

Bolt’s Plans for a Comprehensive ‘Super App’

Following his return to the position of CEO, the company intends to launch a new “super app” shortly. This application will integrate Bolt’s established one-click checkout functionality for e-commerce into a much broader spectrum of services.

The vision extends beyond simplified purchasing. The aim is to provide “one-click everything,” encompassing financial services, peer-to-peer transactions, cryptocurrency access, card management, and diverse financial products, all within a single application.

Comparison to Revolut and Current Metrics

Breslow drew a parallel between Bolt and Revolut, a U.K.-based fintech company with a valuation of $45 billion as of last year. He highlighted that Bolt currently possesses 80 million “wallets,” exceeding Revolut’s 45 million, although acknowledging that Bolt has yet to fully capitalize on its user base for revenue generation.

Recent reports indicate Bolt’s Annual Recurring Revenue (ARR) was approximately $28 million, with a gross profit of $7 million at the close of March 2024. This figure is considerably smaller than Revolut’s reported $2.2 billion in revenue and $545 million in pre-tax profits for 2023.

Fundraising Status and Legal Disputes

The status of Bolt’s prospective funding round remains a key question. News surfaced in August regarding a potential $450 million investment. However, concerns were raised regarding the utilization of $250 million in “marketing credits” and a misidentification of the lead investor.

Several of Bolt’s investors, including BlackRock and Hedosophia, initiated legal action to prevent the funding round, as reported by Forbes. However, Bolt has since announced that these cases have been voluntarily dismissed by all involved parties.

During a recent address, Breslow stated that “all” legal challenges against him have been “fully settled and dismissed.” He did not, however, offer any updates concerning the $450 million fundraise.

Looking Ahead

Breslow expressed that his recent experiences have been a source of humility and have reinforced his commitment to leading Bolt. He acknowledged making errors but conveyed a strong resolve to elevate the company’s performance.

“I’ve got a very big chip on my shoulder,” he stated, indicating a determination to “take Bolt to really new heights.”

Requests for comment sent to BlackRock and Hedosophia have not yet received a response.