Ryan Breslow has officially returned as CEO of Bolt, the one-click checkout fintech company, following a turbulent period marked by legal battles and stalled fundraising efforts. Bolt confirmed the leadership change to TechCrunch on Wednesday, sharing an investor communication in which Breslow stated that he had been reinstated with “unanimous approval” from the company’s board.
Leadership Shakeup at Bolt
Breslow originally stepped down as CEO in early 2022 but is now taking back the reins. Justin Grooms, who served as interim CEO since last March, will transition into the role of president. Grooms, formerly Bolt’s director of sales, became interim CEO after the reported ousting of Maju Kuruvilla by Bolt’s board.
Past Controversies and Legal Challenges
Breslow’s return comes after years of controversy surrounding his leadership. During his previous tenure, he faced allegations of misleading investors and violating securities laws by inflating key business metrics during fundraising rounds. Additionally, he was involved in a legal dispute with Activant Capital over a $30 million loan. However, Bolt announced in September 2023 that it had reached a settlement with Activant, leading to the repurchase of Activant’s Bolt shares and ending the firm’s involvement with the company.
Financial Struggles and Stalled Fundraising Efforts
Bolt has struggled to maintain its once-lofty valuation. Last year, the company was reportedly trying to raise $200 million in equity alongside an unusual $250 million in “marketing credits”, targeting a $14 billion valuation. The deal included Breslow’s return as CEO, but by September, negotiations had seemingly stalled.
While Bolt declined to comment on its current fundraising status, its financial performance has raised concerns. By March 2024, the company had an annualized revenue run rate of $28 million and $7 million in gross profit, according to journalist Eric Newcomer, who reviewed leaked financial documents. A $14 billion valuation would represent a massive multiple over those numbers—even higher than the $11 billion valuation Bolt achieved in early 2022.
Bolt’s Future Under Breslow
Despite the challenges, Bolt remains a significant player in the e-commerce checkout space, having raised around $1 billion in venture capital from investors such as BlackRock, Schonfeld, Invus Opportunities, CreditEase, H.I.G. Growth, and Moore Strategic Ventures.
In his message to investors, Breslow expressed gratitude for their support and optimism about the company’s future. However, as he resumes leadership, he faces the daunting task of restoring investor confidence and steering Bolt through financial and operational hurdles.