Highlights:
- Bolt provides a range of cloud services that online retailers can leverage to handle customer transactions.
- Bolt claims its software can boost the likelihood of e-commerce site visitors converting into paying customers by 13%.
A well-capitalized startup offering software solutions for e-commerce businesses, Bolt Financial Inc. aims to raise USD 450 million in new investment.
Recent reports on the fundraising effort reveal an investor letter written by Bolt’s interim CEO, Justin Grooms. It also stated that company Founder Ryan Breslow will be reappointed as CEO. Breslow stepped down in May 2022 after a public dispute with Bolt competitor Stripe Inc. and Y Combinator.
San Francisco-based Bolt provides a range of cloud services designed for online retailers to handle customer transactions. Its flagship product is a platform that enables consumers to create a single shopping account that can be used across various e-commerce sites. This setup eliminates the need to establish a separate account at each online store, thereby accelerating the checkout process.
Bolt also provides several additional services. These include a pre-designed checkout page that enables online retailers to offer discounts, gift cards, and loyalty program memberships. Another tool from Bolt simplifies the process of providing package tracking to customers.
The company reports that its services are utilized by over 80 million consumers globally. Bolt claims that its software can boost the likelihood of visitors to an e-commerce site converting into paying customers by 13%. Additionally, the company promises to assist online retailers in turning more customers into regular buyers.
When Bolt Founder Ryan Breslow resigned as CEO in 2022, it came to light that the company aimed to raise capital at a valuation of USD 14 billion. The new USD 450 million investment it is reportedly seeking is anticipated to maintain this valuation. Bolt is said to be seeking this capital from two investment firms based in the UK and UAE.
According to sources, less than half of the USD 450 million investment will come from equity funding. Bolt is anticipated to receive USD 250 million in “marketing credits” from the U.K. investment firm, The London Fund.
The company is said to be offering a strong incentive for its current investors to join the funding round. Bolt has requested that these investors contribute “in a proportion that is double their existing percentage stake.” If they choose not to participate, the company reportedly plans to repurchase a significant portion of their shares at approximately one cent each.
Bolt’s latest fundraising effort follows a report by a reputed source about a month ago, which revealed that competitor Stripe had reached a USD 70 billion valuation. This is an increase from USD 50 billion in March but remains below the USD 95 billion valuation the company held after a USD 600 million funding round in 2021.
