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Drone Delivery Startup Zipline Eclipses $7.6B Valuation
Firm Started Operations in 2016 Delivering Blood and Medical Supplies in Rwanda and Has Since Expanded Into Food, Retail
Zipline, a drone delivery and logistics startup, has raised more than $600 million in new funding, boosting its valuation to $7.6 billion, as it expands commercial deployments.
The firm’s fundraising round included backing from Valor Equity Partners and participation from investors such as Tiger Global, Fidelity Management and Research Company and Baillie Gifford.
The new valuation, compared with a 2024 fundraising round at $5 billion, is a sign of confidence in the startup’s ability to scale and commercialize its operations.
“In the next five, 10 years, deliveries made by autonomous aircraft will become standard,” Antonio Gracias, Valor’s founder and chief executive officer, said in a statement.
South San Francisco, Calif.-based Zipline calls itself the world’s largest autonomous delivery service, operating in seven countries. Founded in 2014, it started operations in 2016 delivering blood and medical supplies in Rwanda and has since expanded into food delivery, retail and consumer goods. The firm has U.S. home delivery partnerships with Walmart Inc. and restaurants like Chipotle Mexican Grill, which launched a limited drone burrito delivery in the Dallas area in 2025.
Zipline said it has now completed more than 2 million commercial deliveries of 20 million different items, spanning 125 million miles. The startup said it will use the new funding to support expansion and growth in the U.S. and to new areas.
The U.S. drone delivery market is getting more crowded with retailers and tech groups testing different models. Walmart has worked with multiple partners including Zipline, Alphabet Inc.’s Wing, DroneUp and Flytrex, while Amazon.com Inc. runs its own in-house drone unit operating in Texas and Arizona. Most efforts focus on lightweight, short-range deliveries such as food, groceries and medicine, though questions remain about noise, cost and whether drones can compete economically with vans at scale.
Zipline operates two distinct drone platforms tailored to different delivery needs: a fixed-wing aircraft designed for long-range flight, providing commercial items via parachute-controlled drops from about 60 to 80 feet above the ground; and quieter aircraft designed for shorter distance home deliveries that use a tether for precise, contactless drop-off.
Over the past seven months, Zipline said its U.S. deliveries have expanded at a rate of about 15% week over week. The company has also continued to grow in Africa, receiving grants from the U.S. government for deliveries there and continued orders from African governments.
In the U.S., the Trump administration has moved to accelerate the drone industry’s growth while tightening control of American airspace.
Executive orders signed in June directed regulators to accelerate rules for drones while prioritizing U.S.-made technology and expanding counter-drone measures ahead of events like the 2026 FIFA World Cup. The government followed up in August with proposed rules to let drones fly beyond an operator’s line of sight, a key hurdle for large-scale delivery.
Officials have also framed drones as a strategic technology with major commercial upside, alongside national security risks that require closer oversight.
