Ecommerce tech startup Skio raises $ 3.7 million in funding
Skio, a new startup that aims to make it easier to sell subscription offers to e-commerce companies, Thursday noted that it closed a $ 3.7 million seed funding round.
The investment was led by Adjacent Venture Capital with the participation of over a dozen angel investors.
An increasing number of online retailers are adding subscription offers to their product catalogs with the aim of increasing their revenue. New York-based Skio, incorporated as Jika Inc., has developed a cloud service that simplifies the logistics involved in selling season tickets.
Skio’s service is for online retailers who use Shopify Inc.’s namesake cloud platform to support their operations. Shopify, publicly traded, is a leading provider of technology to the ecommerce ecosystem. The company operates a cloud platform used by more than 1.7 million online retailers around the world to host their e-commerce websites, as well as to manage related activities such as advertising.
Skio provides its service through Shopify’s integrated app store. Using Skio’s service, an online retailer can enable their customers to purchase subscriptions with one click using a feature called Shop Pay that Shopify introduced earlier this year. According to the startup, the convenience of a one-click shopping workflow can help online stores increase the number of customers who purchase a subscription by up to 72%.
Skio also promises to save online retailer employees time. To purchase subscriptions from a retailer that uses a Shopify powered website, users typically need to create an account. If users forget their account passwords, retailer employees should provide technical assistance to resolve the issue.
Providing technical support to buyers can be time consuming and resource intensive for an ecommerce business with a large number of customers. According to Skio, its service reduces support needs by providing a convenient password-less login feature for buyers. The feature promises to help retailers avoid technical issues with forgotten account passwords.
Skio markets its service as a more convincing alternative to the subscription management software competing with the startup ReCharge Inc., which firm an investment of $ 227 million in May. One of the advantages promised by Skio is easier access to updates. The startup says retailers can access the new features it rolls out automatically to its service, while implementing updates provided by ReCharge requires website changes.
Although it was only launched in April, Skio claims that more than a dozen online retailers are already using its platform. The startup currently has five employees and would have plans to use the new $ 3.7 million funding round to hire more software engineers.