PayPal Holdings Inc., an online payments company has disclosed plans to invest $500 million in Uber Technologies as the ride-hailing company has said it aims for $90B IPO Valuation. PayPal will invest in Uber through a concurrent private placement at the IPO price.
A financial services component is important to Uber as it works to expand into a super-app of logistics and transportation services.
Super-apps are applications where customers go for a range of services, such as transportation, shopping and payments. Such companies can be much more lucrative than those that offer just one core business or service.
Uber set a price range of $44 to $50 per share for its IPO in an updated filing. The company seeks to raise about $10 billion in its IPO.
The valuation sought is less than the $120 billion valuations that investment bankers told Uber last year it could fetch, and closer to the $76 billion valuation it attained in its last private fundraising round last year.
