After a week of making headlines, one-click checkout startup Bolt has issued a public response to questions about how it’s faring in the competitive space. In a blog post today, CEO Maju Kuruvilla acknowledged that the company "has become very popular in the media these past few months."
Background on the Company’s Recent Issues
Last week, the startup was in the news for a number of reasons outlined here, including a lawsuit filed by a major customer and reports that it is seeing a slowdown in revenue and customer growth. Sources familiar with internal happenings at the company told TechCrunch that Bolt is in "a holding pattern" as it is "in the process of filing a motion for dismissal." The company said it could not comment on the matter.
CEO Maju Kuruvilla’s Response
In his blog post, Kuruvilla revealed the following figures around the company’s performance, writing that Bolt:
- Has a total of 13.8 million total "shopper accounts," marking a 131% year-over-year increase.
- Has 836 total active merchant accounts across all product lines, representing a 192% YoY increase.
The disclosed figures appear to be an indirect response to what The Information had reported last week, which was that the number of merchants Bolt works with "has been hovering in the low 300s since 2020."
Addressing Speculation on Competition
Kuruvilla — a former Amazon executive — took over as CEO in January after founder Ryan Breslow stepped down. In the blog post, he also addressed speculation that the company is struggling in part because of efforts from the likes of Amazon, Shopify, and Stripe to implement one-click checkout.
In his words, he said those companies use "restrictions…to trap people in their ecosystems." He went on to claim that Bolt’s "focus on decentralized commerce" means that it is "building tools that scale."
"We are focused on decentralization because we know what they don’t: The era of lone marketplaces is over. Brands and merchants are having their day, and we are empowering them by building tools that help them convert shoppers, learn about their consumers, and benefit from our growing network," Kuruvilla wrote.
Notable Developments in the Company’s History
Since its 2014 inception, Bolt has raised over $1 billion in funding and was valued at $11 billion at the time of its $355 million Series E raise in January. Investors include funds and accounts managed by BlackRock, Schonfeld, Invus Opportunities, CreditEase, H.I.G. Growth, Activant Capital, and Moore Strategic Ventures.
Bolt is no stranger to controversy. Its 27-year-old founder, Breslow, started the company after dropping out of Stanford. He stepped down as CEO in January, and Kuruvilla took over.
Recent News on Bolt
- Last week, Bolt was sued by a major customer, which reportedly resulted in a significant loss for the company.
- Reports emerged that Bolt is seeing a slowdown in revenue and customer growth.
- Sources familiar with internal happenings at the company told TechCrunch that Bolt is in "a holding pattern" as it is "in the process of filing a motion for dismissal."
Conclusion
In conclusion, Bolt’s recent response to criticism from CEO Maju Kuruvilla aims to address the company’s performance and address speculation on competition. The figures revealed by Kuruvilla show that Bolt has seen significant growth in shopper accounts and active merchant accounts.
However, the controversy surrounding the company continues, with reports of a lawsuit filed by a major customer and a slowdown in revenue and customer growth. It remains to be seen how Bolt will navigate these challenges and continue to grow in the competitive one-click checkout space.
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