Brightfolk, the fashion firm owned by Danish entrepreneur Anders Holch Povlsen has invested in Swedish ecommerce company Klarna.

Povlsen is also the owner of Bestseller, whose brands include Jack & Jones and Vero Moda, and is an investor in ASOS and Zalando. The terms of his investment in Klarna were not disclosed but Reuters reports the stake is at least 10%.

Pending regulatory approval, Povlsen’s Brightfolk will acquire the shares from existing Klarna shareholders General Atlantic, DST Global, and Niklas Adalberth, who will all still retain stakes in the company.

Klarna has previously partnered with Bestseller. “This has given [Povlsen] a firsthand insight into the strengths of our offerings and therefore a unique ability to strategically support the future development of the company,” said Sebastian Siemiatkowski, CEO of Klarna.

The Swedish company is valued at $2.25 billion as of the end of 2015 and saw a 50% increase in transaction volume in 2016. It has raised over $290 million in equity and debt financing.

Featured image: Zalando

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