Subscription management startup Skio, a Y Combinator alum, has been acquired by Recharge in a deal reportedly worth $105 million in cash. The acquisition highlights a strong return for the company, which had raised only about $8 million in funding prior to its exit.
Skio was founded in 2020 by Kennan Frost and focused on building subscription payment solutions for e-commerce brands, competing directly with Recharge in the same space. Both companies provide tools that help merchants manage recurring payments and customer subscriptions.
While the official announcement did not disclose financial terms, Frost publicly shared that the startup exited with $105 million in cash, emphasizing the capital efficiency of the business given its relatively low funding.
The founder’s journey adds a notable dimension to the story. Frost reportedly started the company after leaving his engineering role at Pinterest following a personal turning point, launching Skio just as the COVID-19 pandemic began.
The deal reflects a broader trend in the startup ecosystem where capital-efficient companies—those that scale with minimal funding—are delivering strong investor returns. Skio’s exit is being seen as a standout example of achieving high valuation multiples without heavy capital dilution.
