Zipline has raised $1.5 billion and expanded its partnership with Walmart, boosting the profile and valuation of this autonomous drone delivery and logistics startup.
Zipline has entered into a new multi-year agreement with Walmart to add 300 new drone delivery sites across the United States. The two companies have had a drone delivery partnership since 2021, but this new agreement represents a significant expansion compared to the current total of only 21 operational drone delivery sites combined.
In terms of financing, Zipline’s $1.5 billion funding round was led by Paradigm, WCM Investment Management, and Layer Global, with participation from Valor Equity Partners, Fidelity Management & Research Company, Uber, Tiger Global, J.P. Morgan, ARK Invest, and Salesforce Ventures. Zipline is currently valued at $21.5 billion.
The company has developed a drone delivery ecosystem, including aircraft, takeoff and landing systems, and logistics software. It plans to use the funding to expand its U.S. manufacturing facilities and hire additional staff to build a nationwide drone delivery network.
Zipline, founded in 2014, began operations in Africa, using autonomous drones to deliver blood in Rwanda, later expanding to Ghana and Nigeria. The California-based company launched its first U.S. operations in 2020, delivering medical supplies to Novant Health in North Carolina. The following year, the company reached an agreement with Walmart.
But what truly accelerated Zipline’s operations in the U.S. was 2022, when the company received Part 135 air carrier certification from the Federal Aviation Administration (FAA)—a critical regulatory milestone that authorizes the company to conduct long-distance commercial drone deliveries. Since then, Zipline has secured several partnerships, including one with Uber earlier this year.
Zipline currently uses drones to deliver food, retail, agricultural, and medical products across five African countries, multiple cities in the United States, and Japan. Its home delivery service utilizes Platform 2 drones, designed to carry up to 8 pounds with a service radius of up to 10 miles. The larger Platform 1 drones are used for long-distance deliveries for businesses, commercial clients, and government entities, with round-trip ranges of up to 120 miles.
The company said on Thursday that its delivery revenue share increased from 10.8% in March to 34.9% in October this year. The latest funding round aims to further boost this metric.