Ryan Breslow, the controversial and outspoken co-founder of Bolt, has somehow once again become the center of industry attention, not just for his reinstatement as CEO but also for the unresolved unrest surrounding his reign. Breslow was once called a visionary when it came to fintech, yet his leadership seems to have zigzagged through bold decision making, court battles, and risky financial maneuvers. The recent scandal surrounding the defense of a $30 million personal loan from Bolt, together with succeeding lawsuits and personal conflict, makes for a picture of a leader who takes dominant actions for the sake of innovation. Speaking at the Fintech Meetup in Las Vegas, Breslow defended his decision, saying it is for Bolt and not self-interest.

Now, with supposed storms behind him, Breslow is eyeing an ambitious new endeavor, a super app to repair the world of e-commerce and financial services, but can he leave the past ups and downs behind and carry Bolt into a new wave of growth? The legal battle regarding the loan originated in the year 2023, when Bolt investor Activant sued Breslow, accusing him of putting the company in debt by defaulting on the loan, which was paid from the company’s funds. It was settled last year when Bolt paid Activant $37 million to repurchase its shares.

Breslow’s Justification for the Loan

Breslow defended the loan, saying that he turned to borrow the loan instead of selling his stock through secondary transactions, and that he believed this act went a long way to prove his faith in Bolt’s future. According to the TechCrunch report, Breslow said,

“It was done to be pro-Bolt. I took it out instead of selling any meaningful secondaries. I wanted to show all of our investors that I’m keeping all my chips in, I believe so much in the stock that I’m not selling my shares”

He further clarified that after Bolt went public, he meant to repay the loan but after his resignation in 2022, the board called in this loan which Breslow saw as a little bit of an attack.

Since resigning from the company, Bolt’s past accusations have supposedly included misleading investors and breaching securities laws through fraudulent and exaggerated business metrics. While claiming to have made a lot of mistakes, he pointed out that they are very different from the accusations pursued by external influences. He admitted that the biggest mistake was granting access to Bolt’s cap table to investors whom he did not know very well.

Vision of the ‘Super App’

Returning as a CEO, Breslow has set ambitious plans for the future of Bolt. He disclosed that the company has plans to officially introduce a “super app” that can go beyond one-click checkout features to the full spectrum of financial services. He said,

“Instead of one-click checkout, we’re going to have one-click everything: financial services, peer-to-peer, crypto, cards, financial products, all in one app”

Breslow compared Bolt to the U.K. fintech company Revolut, which was valued at $45 billion last year. He claimed that Bolt has 80 million “wallets”, while Revolut has 45 million. However, he admitted that Bolt has not yet started making money from its users.

Legal and Financial Uncertainty

Bolt’s plans, despite being ambitious, seem arguable because Bolt’s financial status is uncertain. For instance, its Annual Recurring Revenue (ARR) as of March 2024 was $28 million with a gross profit of only $7 million, while its comparisons with Revolut present a contrast of sorts, in the financial year of 2023, Revolut boasted revenue figures standing at $2.2 billion against a whopping $545 million pre-tax profit.

There is uncertainty on Bolt’s next fundraising round, as in August it came to light that there was a pending $450 million fundraise deal. Yet questions were raised, with it relying largely on $250 million in marketing credits. Forbes reported that other investors such as BlackRock and Hedosophia have also begun to sue against the round, although Bolt announced that all legal cases against Breslow have been dismissed.

Breslow’s Next Step

Breslow confessed that he now considers his very bumpy ride as an experience that humbled him and made him more determined than ever. He said,

“You know, I obviously make mistakes but I’ve got a very big chip on my shoulder. I’m ready to take Bolt to really new heights”

Bolt’s next move is expected to be closely analyzed by investors and insiders, especially through bold comparisons to fintech giants such as Revolut and a commitment to changing how people engage with digital transactions. Still, there’s uncertainty ahead with questions about the company’s financial position and fundraising plans. Bolt is now into various financial and legal disasters, and all eyes will now be on Breslow to determine whether he can propel the company’s ambitious plans following his return or if old controversies would continue to haunt his leadership.