After the Initial Public Offering, Uber has received the $500M from PayPal in investments. The Payment Processing Giant is investing nearly Half a million dollars in Uber after the announcement of its IPO price. PayPal is purchasing the stocks at a rate of $47 per share. With this investment, Valuation of Uber rose to $78.8 Billion. PayPal decided to pay between the expected IPO Price of $45-$50 per share for this investment. The announcement was made without any additional details, except for the amount.
PayPal’s CEO Dan Schulman shared a LinkedIn post that announced the investment in Uber. Also, the SEC Filings have mentions of the investments from PayPal. In the Statement from Dan Schulman, the company said that they are expecting future payment processing collaborations and development of Uber’s wallet system. With the loss of nearly $1 billion in the first quarter, Uber was clearly in need of public funding rounds or even the private and they’ve got one. This investment money will help the company to fulfill the professional commitments and also to keep business afloat.
This is one of the significant investments for PayPal as it looks like the company is going to build another financial payment processing empire. PayPal has already been separated from eBay and is building its realm with a record number of 227 million accounts worldwide with $4.13 billion revenue in the last quarter. The company is laying down the base for its future business ventures and getting the exposure for new ventures. The strategic investments in Uber and other small startups indicated the vision of the company to attain perpetual succession in the industry. With Uber, PayPal will create a new Wallet system to store the money and also become one of the primary payment processing options for Taxi-hailing service.