Zipline Raises $1.5B in Funding at $21.5B Valuation

Zipline, a South San Francisco, CA-based provider of an autonomous drone delivery platform, has raised $1.5 Billion in a funding, at $21.5B valuation.

The round 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.

The company plans to use the funding to expand its US manufacturing facilities and increase hiring as it builds a nationwide drone delivery network.

What is Zipline?

Founded by Keller Rinaudo Cliffton and Keenan Wyrobek, Zipline operates an autonomous drone delivery network for healthcare, retail and food businesses.

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Its platform uses autonomous aircraft and software to deliver products directly to customers. The system is designed to provide fast, quiet deliveries without relying on road traffic.

For businesses, the service can help reach customers beyond the areas typically covered by traditional delivery. Zipline works with restaurants, retailers and other organisations that want to offer customers another delivery option.

How Much Funding Has Zipline Raised?

Zipline has raised $1.5 billion in its latest funding round, valuing the company at $21.5 billion.

The announcement did not disclose the company's total funding raised across previous rounds.

Who Invested in Zipline’s Funding Round?

The round was led by Paradigm, WCM Investment Management and Layer Global.

Other participating investors include Valor Equity Partners, Fidelity Management & Research Company, Uber, Tiger Global, J.P. Morgan, ARK Invest and Salesforce Ventures.

Why the Funding Matters

Zipline will use the new capital to expand its manufacturing facilities in the United States and hire more employees.

The investment will support the company's plans to build a nationwide drone delivery network and increase its capacity to serve businesses and customers.

Who founded Zipline?

Zipline was founded by Keller Rinaudo Cliffton and Keenan Wyrobek. The company is headquartered in South San Francisco, California. The founding year was not specified in the announcement.

“Zipline is now one of the largest autonomous robotics companies in the world -- operating with scale, safety, and a magical user experience for consumers and merchants,” said Matt Huang, Co-Founder and Managing Partner of Paradigm. “It's no wonder that some of the largest merchants in the world are partnering with Zipline to use their delivery network.”

Market and Business Growth

Zipline says hundreds of businesses are generating additional revenue through its delivery network, with dozens of new businesses joining each week. Existing partners are also expanding their relationships by adding hundreds or thousands of locations.

Among a group of its longest-standing restaurant partners, Zipline's share of delivery revenue increased from 10.8% in March to 34.9% in October. These restaurants also reported a 26% increase in delivery gross merchandise value, with 80% of that growth coming from Zipline orders.

In October, the median Zipline order was delivered 19 minutes after checkout, compared with more than 30 minutes for traditional delivery. Bakery orders with quick preparation times had a median delivery time of 10 minutes.

What Happens Next?

Zipline plans to expand its US manufacturing operations and increase hiring as it builds out its nationwide delivery network.

The company will also continue growing its network of business partners and supporting existing partners as they add more locations to the service.

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