Zipline has raised $1.5 billion in funding and has strengthened its partnership with Walmart. These two transactions have increased the visibility and valuation of this autonomous drone delivery and logistics startup company.

Zipline has reached a new multi-year agreement with Walmart to add 300 additional drone delivery sites in the United States. The two companies have had a drone delivery agreement since 2021, but compared to the current total of only 21 operational drone delivery sites, this new agreement represents a significant expansion.

In terms of financing, the $1.5 billion round of funding for Zipline was 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 in the investment. The current valuation of Zipline is $21.5 billion.

The company has developed an unmanned aerial vehicle (UAV) delivery ecosystem that includes the aircraft, landing and takeoff systems, and logistics software. The company stated that it plans to use these funds to expand its manufacturing facilities in the United States and hire more employees in order to build a nationwide UAV delivery network.

Zipline was founded in 2014, initially starting in Africa, where it used its own drones to transport blood in Rwanda. Later, it expanded to Ghana and Nigeria. The company, headquartered in California, began its first operations in the United States in 2020, delivering medical equipment and supplies to Novant Health in North Carolina. The following year, the company reached an agreement with Walmart.

But it was in 2022 that Zipline's business in the United States truly began to accelerate. That year, Zipline obtained the Part 135 Air Carrier Certification issued by the Federal Aviation Administration (FAA) of the United States, which is a key regulatory hurdle that authorizes companies to conduct long-distance commercial drone deliveries. Since then, the company has secured several partnerships, including one with Uber earlier this year.

Zipline Currently, drones are used to deliver food, retail products, agricultural supplies, and medical products in five African countries, multiple cities in the United States, and Japan. Its home delivery service utilizes Platform 2 drones, which are designed to carry a maximum load of 8 pounds and have a service radius of up to 10 miles. Larger Platform 1 drones are used for long-distance deliveries for enterprises, businesses, and governments, covering a distance of up to 120 miles per round trip.

The company stated on Thursday that its delivery revenue proportion increased from 10.8% in March to October of this year to 34.9%. This latest round of financing is aimed at further driving up this metric.