Sequoia Capital has bought a stake in Klarna AB, a European payments provider, and Michael Moritz, a partner at the legendary Silicon Valley venture firm, has joined its board of directors. The amount of the investment wasn’t disclosed, but it makes Sequoia the single largest shareholder of the Stockholm-based company. The second-largest shareholder is Oresund Investment AB, a $7 billion Swedish fund.
“Klarna has done a fabulous job serving the needs of merchants and consumers in Europe’s e-commerce market,” Moritz said in a statement. “With e-commerce growing rapidly across the E.U., where card based payments are only 1/3 that of the U.S., Klarna has an incredible opportunity to be the most trusted solution in the $40 billion global payments market.” Sequoia, which was an early investor in online payment provider PayPal, has investments in a number of other e-commerce companies, including MarketLive.
Klarna was founded in 2005 and, and provides mobile payments and other e-commerce solutions in several European countries, including Sweden, Norway, Denmark, Finland, Germany and Holland. It’s reportedly the largest European provider of in-store credit and invoice-based e-commerce payments. It has about 200 employees and handled transactions worth 500 million euros ($640 million) in 2009 from more than 5,000 merchants. The company closed a Series A financing round of 15 million Swedish krona in 2007.