Skio, a fintech company specializing in subscription billing and a Y Combinator alum from 2020, has been acquired by its competitor Recharge. The acquisition was publicly announced on Thursday.
Both companies focus on facilitating subscription payments for brands, making this acquisition a strategic move in the fintech landscape.
Although the official terms of the deal were not disclosed, Kennan Frost, the founder and former CEO of Skio, shared on social media that the company was sold for $105 million in cash, having raised only $8 million in funding. This represents a substantial return on investment.
Frost, who stepped down from his role about two years ago, noted that during his tenure, the company prioritized product development over marketing and sales efforts. The current CEO, Aidan Thibodeaux, who was the first COO of Skio, confirmed this approach, stating that he and the founding CTO, Andrew Chen, handled all sales calls themselves.
Frost's entrepreneurial journey is particularly compelling. After leaving his engineering position at Pinterest due to a panic attack, he founded Skio just as the COVID-19 pandemic began. Initially struggling at Y Combinator, he pivoted his business model during the accelerator program, which ultimately led to the company's success.
Under Frost's leadership, Skio achieved $10 million in annual recurring revenue (ARR) and became profitable within three years. His persistence and adaptability were recognized by his Y Combinator advisor, Gustaf Alströmer, who praised Frost's determination throughout his entrepreneurial journey.
At the time of the acquisition, Skio reported an ARR of $32 million and had processed approximately $4 billion in payments. Frost is now focused on a new venture called Icon, which offers a product named AdMaker for generating and tracking advertisements.
