Bolt CEO Ryan Breslow Defends $30 Million Loan, Unveils Ambitious 'Super App' Plans

In an exclusive appearance on Monday, Ryan Breslow, the controversial co-founder of Bolt, publicly addressed the legal and financial controversies surrounding the $30 million personal loan he took out from his own company. The loan, which led to a string of legal battles and was a central factor in his temporary ouster as CEO in 2022, has been a contentious point in the history of the payments startup. Breslow, who returned to lead the company earlier this month, now views the loan as a “misunderstanding,” adding that it was part of his attempt to demonstrate unwavering loyalty to Bolt and its investors.

Breslow explained that, at the time, he believed he had ample time to repay the loan, with plans to settle the debt after Bolt's anticipated initial public offering. However, following his departure as CEO, the board demanded repayment — an action Breslow described as “a bit of an attack” on his leadership. While the details of the loan’s approval remain under scrutiny, Breslow maintained that it was unanimously sanctioned by Bolt’s board and that it was intended to keep his stake in the company intact rather than selling shares in a secondary transaction. “I took it out instead of selling any meaningful secondaries,” Breslow asserted. “I wanted to show all of our investors that I’m keeping all my chips in.”

Despite the controversy surrounding the loan, Breslow emphasized that the legal battles over the issue were now “fully settled” and “dismissed.” The legal dispute began in 2023 when Bolt investor Activant sued Breslow, claiming the entrepreneur had burdened the company with $30 million in debt, which it said was then repaid using company funds. The case was eventually resolved with Bolt agreeing to repurchase Activant’s shares for $37 million.

While the legal battles have subsided, Breslow’s return to Bolt has not been without its challenges. In addition to the loan, the company has faced accusations of misleading investors and inflating metrics during Breslow’s previous tenure as CEO, which led to his temporary ousting. In an apparent acknowledgment of his past missteps, Breslow admitted that he had made “a ton of mistakes,” though he denied the specific accusations of fraud and misconduct that had been leveled against him. His main regret, he said, was allowing individuals onto Bolt’s cap table whom he “did not know very well.”

Looking forward, Breslow unveiled an ambitious vision for Bolt’s future: the creation of a new “super app” designed to revolutionize the way consumers interact with financial services. Bolt’s new offering, he said, would extend its signature one-click checkout functionality into a broad range of services, from peer-to-peer payments and crypto to cards and other financial products.

“Instead of just one-click checkout, we’re going to have one-click everything,” Breslow said. The app would integrate financial services and e-commerce into a single platform, aiming to rival the likes of Revolut, the U.K. fintech giant valued at $45 billion. Breslow pointed to Bolt’s 80 million “wallets” as a key advantage, suggesting that the company already has a larger user base than Revolut, which has 45 million. However, he was quick to acknowledge that Bolt has yet to fully monetize its consumer base, a crucial challenge as the company expands its reach.

Bolt’s financial trajectory has been more modest. As of March 2024, the company’s annual recurring revenue (ARR) stood at approximately $28 million, with $7 million in gross profit. This contrasts starkly with Revolut’s 2023 revenues of $2.2 billion and profits of $545 million. Breslow’s ambition to grow Bolt into a financial superpower will require a monumental shift in its operations and, undoubtedly, substantial funding.

The company’s upcoming fundraising round remains a point of uncertainty. In August, reports surfaced that Bolt was preparing to raise $450 million, although the deal was mired in confusion over the role of certain investors and the unusual use of $250 million in “marketing credits.” Some of Bolt’s key investors, including BlackRock and Hedosophia, even filed lawsuits to block the round, though the legal action has since been voluntarily dismissed by all parties involved.

Despite these obstacles, Breslow remained resolute in his commitment to Bolt’s future. He reflected on his tumultuous journey, acknowledging that he had been “humbled” by the challenges he faced and the legal and financial pressures that came with them. “I’m ready to take Bolt to really new heights,” he said, with a palpable sense of determination.

As Bolt looks to navigate its way through a competitive fintech landscape, the big question remains: Can Breslow’s vision for a super app and his ability to overcome his past mistakes propel the company into a new era of growth? Only time will tell, but Breslow’s chip-on-the-shoulder attitude suggests he’s not ready to give up without a fight.