Bolt Raises $355M, Reaches Decacorn Status

Bolt Secures $355 Million in Series E Funding

Checkout technology innovator Bolt has successfully attracted significant new investment. The company announced on Friday a $355 million Series E funding round. This latest financing brings Bolt’s valuation to $11 billion, as reported by sources familiar with the deal.

One-Click Checkout and Enhanced Security

Bolt’s core offering is a one-click checkout solution. This aims to replicate the streamlined experience popularized by Amazon since 1997. Furthermore, the system integrates payment processing and fraud prevention services. These features are designed to validate transactions and ensure secure payment acceptance.

Shoppers benefit from a unified account system. Once created, these credentials can be utilized across a vast network of hundreds of brands participating in the Bolt ecosystem.

Rapid Funding Growth

This new capital injection follows closely on the heels of a $393 million Series D funding round secured just three months prior. To date, Bolt’s total funding has reached almost $1 billion. Founder and CEO Ryan Breslow indicated to TechCrunch that the company’s current valuation nearly doubles that achieved during the Series D round.

Competition and Expansion Plans

Breslow highlighted that Bolt operates within a competitive landscape dominated by companies with valuations in the hundreds of billions of dollars. Key competitors include Stripe, Shopify, and Checkout.com.

“While this funding is substantial, it’s essential for maintaining competitiveness,” he explained. “Our ambition extends beyond parity; we strive for excellence. This capital will facilitate talent acquisition, strategic mergers, and expansion into the European market, a key priority for us.”

Strategic Acquisitions and International Growth

Bolt initiated its international expansion in November. This was achieved through agreements with Benefit Cosmetics and PrestaShop. Simultaneously, the company completed its first acquisition, acquiring Tipser, a Swedish technology firm specializing in direct checkout solutions for various digital platforms.

“Tipser’s expertise in embedded commerce was invaluable,” Breslow stated. “They had refined their technology for a decade and were the leading player in the field. Integrating their strengths with our own was a strategic imperative.”

He further noted that the integration of Bolt’s checkout system with Tipser’s embedded commerce technology is progressing well. Early results include securing contracts with several major clients.

Investors in the Series E Round

The Series E round saw participation from funds and accounts managed by BlackRock, alongside new investors including Schonfeld, Invus Opportunities, CreditEase, and H.I.G. Growth. Existing investors Activant Capital and Moore Strategic Ventures also contributed.

Investor Perspective

Ben Tsai, a partner at Invus Opportunities, commented via email that the e-commerce sector presents “a significant opportunity to enhance the online checkout process, and retailers are recognizing the cost of customer attrition.”

“Bolt’s expanding network of millions of shoppers benefits from the convenience of one-click checkout across a growing number of retailers,” Tsai added. “We are pleased to support Ryan and the Bolt team, and we foresee substantial opportunities within the disruptive space Bolt is pioneering.”

Key Performance Indicators

Over the past year, Bolt has experienced an 80% increase in gross merchandise value per merchant. Account growth surged by 180% compared to 2020, and transaction volume increased by 200% year-over-year. The company anticipates adding 100 million shoppers to its network within the next 18 months.

Conscious Culture Initiative

Following the launch of Conscious Culture, a framework for fostering people-centric work environments last May, Bolt now supports nearly 80 companies and hundreds of customers within this collective.

Workforce and Future Product Development

Bolt currently employs over 550 individuals working remotely from more than 200 cities. The new funding will also accelerate the development and release of a range of new products throughout the year, in addition to supporting talent acquisition and international expansion.

Focus on Emerging Commerce Channels

Planned investments include a strong focus on social commerce. Native embedded commerce capabilities will be extended to various channels, including websites, chatbots, in-venue experiences, video streams, and gaming platforms. Breslow believes this will establish Bolt’s checkout functionality ubiquitously.

Funding will also be allocated to enhance consumer products. This aims to streamline the shopping experience for users across the Bolt network.

Replicating the Amazon Experience

Breslow envisions Bolt dismantling the “Amazon gold standard” buying experience. The goal is to enable any business to offer not only one-click checkout but also seamless order tracking, expedited returns, fast shipping, and membership benefits – all features that initially propelled Amazon’s success.