Recharge has acquired the subscription payments platform Skio, a Y Combinator alum, in a $105 million cash deal.
Earlier, the startup raised just $8 million, according to founder Kennan Frost‘s X post. Skio had also reached $32 million in annual recurring revenue and processed around $4 billion in payments, claims the founder.
Frost, a self-described college dropout, started Skio in 2020 after leaving his engineering job at Pinterest following a panic attack. He went through Y Combinator that year, describing his early experience there as a failure until a pivot to subscription payments changed everything.
What he built was a cleaner, more modern alternative to Recharge, with faster integration, better customer portals, deeper Shopify compatibility, aimed at fast-growing direct-to-consumer brands that found the incumbent too rigid and too slow to ship.
At its core, Skio builds subscription infrastructure for e-commerce brands, particularly those operating on Shopify. The platform enables businesses to manage recurring payments, improve retention, and customise subscription experiences. Features such as flexible workflows, intuitive customer portals, and real-time analytics allow brands to optimise churn and scale more effectively.
What set Skio apart was its product-first philosophy. While many competitors relied on legacy systems or complex integrations, Skio positioned itself as a modern, flexible alternative designed for fast-growing direct-to-consumer brands. Its emphasis on usability and adaptability, along with deep Shopify integration, made it particularly attractive to companies looking to scale subscriptions without operational friction.
Skio operates in a crowded subscription commerce space, competing with players like Appstle and Loop Subscriptions. While Appstle has gained traction for its highly customisable workflows and cost-effective pricing, Loop Subscriptions has positioned itself around retention, offering tools designed to reduce churn and improve customer lifetime value. Both competitors highlight the growing demand among Shopify brands for flexible, data-driven subscription solutions.
Despite competing with well-funded players, Skio built a sizeable business with minimal capital, showing that disciplined execution can still outperform aggressive spending.
The acquisition reflects a broader trend in the subscription economy, where infrastructure providers are consolidating to offer more comprehensive solutions. For Recharge, integrating Skio’s capabilities strengthens its offering and expands its merchant base. For Skio, the deal marks the culmination of a journey defined by pivots, discipline, and a clear focus on product.
