Skio, a subscription payment service established by Kennan Frost, a self-identified college dropout and Y Combinator alum from 2020, has been acquired by its competitor Recharge. Both firms provide tools for managing subscription payments, significantly enhancing their footprint in this evolving market.
Although the exact terms of the acquisition were not revealed in the official announcement, Frost disclosed via social media that Skio sold for an impressive $105 million, having only raised $8 million throughout its journey. This achievement represents a substantial return on investment.
Frost, who had stepped away from Skio roughly two years prior to the acquisition, detailed the company’s lean operations in a LinkedIn post made by current CEO Aidan Thibodeaux. Thibodeaux, the company’s first COO, highlighted their strategy focused on product development rather than marketing expenses, handling every sales call personally alongside founding CTO Andrew Chen.
Frost’s entrepreneurial journey is particularly remarkable. He established Skio after leaving his engineering role at Pinterest due to a panic attack, only to face the global pandemic shortly thereafter. Initially struggling in the Y Combinator incubator, he eventually pivoted to focus on subscription services, leading Skio to achieve an annual recurring revenue (ARR) of $10 million and then to further profitability. He credited the growth of the company to a dedicated team that helped transform early traction into a successful business.
Gustaf Alströmer, Frost’s adviser at Y Combinator, confirmed the sale on X, reflecting on Frost’s resilience through various challenges during the startup’s early days.
At the time of its sale, Skio reported an ARR of $32 million and had facilitated $4 billion in processed payments. Currently, Frost is channeling his efforts into a new venture called Icon, which features a product known as AdMaker for advertising creation and campaign tracking.
Attempts to reach Frost, Recharge, and venture capitalist Nicolas Wittenborn for further comment were unsuccessful.
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