Skio, supported by Y Combinator, was sold to Recharge for $105 million in cash after achieving an annual recurring revenue of $32 million without a marketing or sales team.

      TL;DR: Skio, a subscription platform for Shopify backed by $8 million in funding and without any spending on marketing, sales, or advertising, was acquired by Recharge for $105 million in cash. Under the leadership of founder Kennan Frost, Skio achieved $32 million in annual recurring revenue and processed $4 billion in payments before the acquisition. Frost, who had dropped out of college and pivoted his startup during Y Combinator, has since launched a new AI advertising company called Icon. Skio provided subscription infrastructure for Shopify merchants, being a modern alternative to Recharge, which dominates the market. The company was built without traditional growth expenditures, relying on product quality and word of mouth, leading to significant returns for investors. The deal reduces competition in the Shopify subscription sector and highlights the trend of larger SaaS firms acquiring innovative smaller companies. Following the acquisition, Frost is already pursuing new ventures in AI advertising, showing the swift evolution of the current startup landscape. His experience underscores a method of building capital-efficient products that meet market needs, achieving substantial returns without conventional marketing strategies.