Y Combinator alum Skio acquired by Recharge for $105M cash
Original: Y Combinator alum Skio sells for $105M cash, only raised $8M, founder says
Why This Matters
Demonstrates high-return startup success story in subscription payments space
Skio, a Y Combinator 2020 graduate that builds subscription payment products, was acquired by competitor Recharge for $105 million cash after raising only $8 million. Founder Kennan Frost had left the company two years ago.
Skio, founded by college dropout Kennan Frost after he left Pinterest following a panic attack, was acquired by subscription payment competitor Recharge. Frost solo-founded the company during COVID-19 and struggled during Y Combinator's summer 2020 batch before pivoting to the subscription payments idea. Under current CEO Aidan Thibodeaux, who took over two years ago as the company's first COO, Skio reached $10 million ARR and profitability through a no-marketing approach, with leadership making every sales call themselves. The acquisition represents a 13x return on the $8 million raised from investors including Y Combinator and Adjacent VC.