Autonomous drone delivery startup Zipline secured a $1.5 billion funding round led by Paradigm, WCM Investment Management, and Layer Global, alongside an expanded multi-year partnership with Walmart. The retailer plans to scale service by launching 300 drone delivery locations nationwide, up from 21 current sites. Supported by domestic manufacturing growth, the expansion leverages Platform 2 drones that complete 10-mile home drop-offs carrying up to eight pounds.
Key points
Expanded domestic manufacturing facilities and new hiring will accelerate the deployment…: Expanded domestic manufacturing facilities and new hiring will accelerate the deployment of the nationwide delivery network.
The company has transitioned from international medical logistics into broad commercial c…: The company has transitioned from international medical logistics into broad commercial categories since obtaining FAA air carrier certification in 2022.
A dual-fleet strategy utilizes short-range home delivery drones alongside aircraft capabl…: A dual-fleet strategy utilizes short-range home delivery drones alongside aircraft capable of completing 120-mile round trips for enterprise clients.
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Zipline has raised $1.5 billion and ramped up its partnership with Walmart, a pair of deals that have raised the autonomous drone delivery and logistics startup’s profile and valuation.
Zipline and Walmart reached a new multi-year agreement to add 300 drone delivery sites across the United States. The two companies have had a drone delivery agreement since 2021, but this deal is a significant jump from the 21 active drone delivery sites they have together today.
On the fundraising side, Zipline’s $1.5 billion raise 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 now valued at $21.5 billion.
The company, which has developed a drone delivery ecosystem that includes aircraft, launch and landing systems, and logistics software, said it plans to use the funds to expand its U.S. manufacturing facilities and hire more workers to build out a nationwide drone delivery network.
Founded in 2014, Zipline got its start in Africa, where it used its autonomous…
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