Picture taken on Aug. 28, 2017. REUTERS/Amir Cohen

PayPal Holding Inc. (PYPL) will provide a significant investment into Uber Technologies Inc. as the rideshare company launches its initial public offering (IPO) on Friday. PayPal intends to invest $500 million in the company in a private placement at the IPO price.

PayPal’s investment comes at a keen time for Uber, that is looking to increase its app capabilities as with a superapp that offers a range of services, Reuters reported. PayPal is already offered as the lead payment option on Uber’s app, but the investment will help to further extend the partnership between the two companies. PayPal said, its payment platform makes up the "vast majority of all credit card and other payments" made in the U.S. and Australia with Uber.

"This is another significant milestone on our journey to be a platform partner of choice, helping to enable global commerce by connecting the world's leading marketplaces and payment networks,” Dan Shulman, PayPal president and CEO said.

Uber is expected to launch the IPO at an $80 to $90 billion valuation, down from the $120 billion the company initially suggested, Reuters reported. Share price is expected to be at $44 to $50 per share, according to the SEC filing.

The IPO from Uber is anticipated to be the second biggest tech offering on the New York Stock Exchange since Alibaba launched its IPO, Business Insider reported.

“ We are still barely scratching the surface when it comes to huge industries like food and logistics, and how the future of urban mobility will reshape cities for the better," wrote Dara Khosrowshahi, Uber CEO said in the SEC filing.

Shares of PayPal stock were down 0.64 percent as of 11:08 a.m. ET on Friday.