A Y Combinator-backed subscription billing startup that raised only $8M just sold for $105M.
Skio, which provides subscription management tools for merchants, was acquired by competitor Recharge in an all-cash deal. The company's founder and former CEO confirmed the $105M price tag. Skio went through Y Combinator's Winter 2020 batch and raised a total of $8M across its lifetime. The sale represents roughly 13x the capital raised.
The exit is notable because it happened without the massive funding rounds that have become standard for startups chasing growth at all costs. In a market where late-stage companies are struggling to justify valuations and IPOs remain elusive for most, Skio's relatively modest fundraising path still delivered a meaningful return. It also illustrates the ongoing consolidation in the subscription billing space, where larger players like Recharge are acquiring smaller competitors to expand their feature sets and customer bases.
Recharge, which itself has raised significant venture funding, now absorbs one of its rivals rather than competing against it directly.