Zipline raised $1.5 billion at a $21.5 billion valuation in a funding round led by Paradigm, WCM Investment Management, and Layer Global. Valor Equity Partners, Fidelity Management & Research Company, Uber, Tiger Global, J.P. Morgan, ARK Invest, and Salesforce Ventures also participated.
The autonomous drone delivery company simultaneously expanded its partnership with Walmart. The two companies will add 300 drone delivery sites across the United States under a new multi-year agreement, up from 21 active sites today. Zipline and Walmart first partnered in 2021.
Zipline plans to use the funding to expand U.S. manufacturing facilities and hire workers to build out a nationwide drone delivery network. The company operates two drone models. Its Platform 2 drones carry up to eight pounds within a 10-mile radius for home delivery. Its larger Platform 1 drones handle long-range deliveries covering 120 miles round trip for enterprise and government clients.
Zipline said its share of delivery revenue grew from 10.8% to 34.9% between March and October of this year. The company now operates in five African countries, several U.S. cities, and Japan. In 2022, Zipline received Part 135 air carrier certification from the Federal Aviation Administration, authorizing it to complete long-range commercial drone deliveries. Zipline partnered with Uber earlier this year.