Recharge Buys Skio for $105M, Setting Subscription Commerce M&A Record
Recharge acquired Skio for $105 million in cash on April 30, 2026.
Why it matters: Efficient M&A strategies in fintech—such as Skio's product-first, low-burn approach—offer legal tech founders and corporate counsel a template as consolidation and valuations shift. The scale of this deal signals where future legal tech M&A may be headed as operators optimize for leaner exits.
- Skio raised just $8 million before its $105 million acquisition by Recharge.
- At the time of sale, Skio reported $32 million in recurring revenue and $4 billion processed payments.
- Recharge and Skio jointly serve over 20,000 merchants, processing about $20 billion in yearly payments.
- Industry media called this the largest private acquisition in subscription commerce to date.
Skio, a Y Combinator graduate (W20), was acquired by Recharge for $105 million in cash on April 30, 2026. Skio had previously raised just $8 million in venture capital, making its exit notable for buyers and investors watching capital efficiency.
- Skio provided subscription billing software to e-commerce merchants, prioritizing product development over paid marketing or dedicated sales, with a small team focused on merchant experience.
- Founder Kennan Frost launched Skio after Pinterest, steering the company to $32 million in annual recurring revenue (ARR)—a key metric for software companies—and $4 billion processed payments. ARR indicates the predictable revenue earned annually from subscriptions.
- Recharge, now combining with Skio, reports ARR above $100 million, according to its press announcement, and the companies process over $20 billion in merchant payments a year.
- According to TechCrunch, this is the largest private acquisition in the subscription commerce sector to date.
For GCs and legal tech leaders, Skio's lean scaling signals how efficient, product-driven startups can command strong M&A outcomes—even in a cautious funding market. Focusing on core product value and tight operational controls can make legal tech startups more attractive to PE and strategic buyers, particularly as consolidation picks up pace.
"Both companies had a path forward independently. We chose a bigger one," Recharge CEO Oisin O'Connor told TechCrunch.
By the numbers:
- $8M — Venture funding raised by Skio before sale
- $105M — Recharge's all-cash acquisition price
- $4B — Payments processed by Skio at time of sale
Yes, but: Skio's focus on e-commerce may mean legal tech startups need to account for sector differences when applying these M&A lessons.
What's next: No immediate plans for further acquisitions have been announced by Recharge.