Drone delivery company Zipline has raised $1.5 billion in new funding at a $21.5 billion post-money valuation, the company announced Thursday, alongside a new multi-year agreement with Walmart that will bring its delivery service to 300 additional U.S. store locations.
Key takeaways
- Zipline raised $1.5 billion in a round led by Paradigm, WCM Investment Management, and Layer Global, valuing the company at $21.5 billion post-money.
- A new multi-year Walmart deal will expand drone delivery to 300 additional U.S. stores, up from 21 active locations today.
- Uber, a Zipline partner since earlier this year, is targeting one million deliveries per day with the company by 2029, according to Zipline’s announcement.
- The new capital is earmarked for U.S. manufacturing expansion and hiring.
A round led by Paradigm, with Uber and Fidelity joining in
The $1.5 billion raise was led by Paradigm, WCM Investment Management, and Layer Global. The investor list also includes Valor Equity Partners, Fidelity, Uber, Tiger Global, J.P. Morgan, ARK Invest, and Salesforce Ventures, according to the company.
The raise arrives as Zipline shifts its center of gravity toward the U.S. market.
Walmart expands from 21 stores to more than 300
The new multi-year agreement with Walmart will extend Zipline’s delivery service to 300 additional U.S. store locations. The two companies have partnered since 2021 and currently operate from 21 active sites.
Uber, which partnered with Zipline earlier this year, is aiming to reach one million deliveries per day through the partnership by 2029, according to Zipline’s funding announcement. Zipline said that among a cohort of its longest-tenured restaurants, its share of their delivery revenue grew from 10.8% to 34.9% between March and October, a figure the company reported as part of its raise.
Grey Journal has covered retail drone delivery experiments before, including Chipotle’s Zipotle pilot, which tested whether drone drops could work for fast food.
From blood delivery in Rwanda to American suburbs
Zipline was founded in 2014 and first made its name delivering blood and medical supplies in Rwanda, later expanding into Ghana, Nigeria, and other African markets. It began U.S. operations in 2020 with Novant Health in North Carolina and received FAA Part 135 air carrier certification in 2022.
The company now operates in five African countries as well as U.S. cities and Japan, delivering food, retail goods, agricultural supplies, and health products. Its P2 aircraft handles home delivery of packages up to eight pounds within a 10-mile radius, while the larger P1 covers round trips of up to 120 miles for enterprise customers.
Zipline said the new funding will support U.S. manufacturing expansion and hiring as it builds out what it describes as a nationwide delivery network.
FAQ
How much did Zipline raise and at what valuation?
Zipline raised $1.5 billion at a $21.5 billion post-money valuation, in a round led by Paradigm, WCM Investment Management, and Layer Global.
What does the new Walmart deal include?
A multi-year agreement to expand Zipline’s drone delivery service to 300 additional U.S. Walmart store locations, up from 21 active sites today. The partnership began in 2021.
What is Uber’s role with Zipline?
Uber invested in the round and partnered with Zipline earlier this year. Zipline’s announcement says Uber is targeting one million deliveries per day through the partnership by 2029.
Where does Zipline operate?
Zipline operates in five African countries, U.S. cities, and Japan, delivering food, retail, agricultural, and health products. It was founded in 2014 and began with blood delivery in Rwanda.
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