Zipline has raised $1.5 billion in fresh funding and struck a major expansion agreement with Walmart, pushing its valuation to $21.5 billion. The drone delivery startup will add 300 new delivery sites across the U.S., up from just 21 in operation today, under a renewed multi-year deal with the retail giant.
Big funding, big partners
The round was led by Paradigm, WCM Investment Management, and Layer Global, drawing in backing from Valor Equity Partners, Fidelity, Uber, Tiger Global, J.P. Morgan, ARK Invest, and Salesforce Ventures. Zipline intends to funnel this capital toward expanding its manufacturing footprint in the U.S. and hiring more staff to scale its drone logistics network nationwide.
From medical flights to retail skies
Since its founding in 2014, Zipline first gained attention for delivering blood in Rwanda and later in Ghana and Nigeria. In 2020, it launched medical supply delivery in the U.S., working with Novant Health in North Carolina. The following year, the company inked its first partnership with Walmart.
A major regulatory milestone arrived in 2022 when Zipline secured its Part 135 air carrier certification from the FAA, which authorizes long-range commercial drone operations. Since then, the startup has broadened its service base, delivering food, retail items, agricultural supplies, and healthcare products across multiple U.S. cities, five African nations, and even Japan.
Its platform approach includes two drone models: Platform 2, built for last-mile delivery up to 10 miles carrying as much as 8 pounds; and Platform 1, designed for long-distance enterprise, government, and business deliveries capable of 120-mile round trips.
Delivery revenue has surged recently, rising from 10.8% in March to 34.9% in October. The new funding round aims to drive that share significantly higher.
Walmart’s expanded commitment underscores how ambitious the U.S. is becoming in drone logistics. Moving from 21 existing drone delivery sites working with Zipline to an additional 300 signals Walmart’s belief in the technology’s promise.
What this means: Zipline is now one of the most valuable names in autonomous delivery. Its scaling ambitions, bolstered by Walmart’s demand and federal permissions, could set new benchmarks for drone commerce. The next few months will reveal whether it can turn valuation and good intentions into reliable, nationwide service.
