Zipline in talks to raise $1B at $20B valuation
What's the deal? Zipline, a drone delivery startup, is in talks to raise $1 billion in a Series I round that would value it at roughly $20 billion, according to three people with knowledge of the fundraise. That would more than double its prior valuation of $7.6 billion.
Why now? The talks follow an August partnership with Uber to expand drone delivery across the US. Investors also expect the cost of drone delivery to fall, broadening what was once a niche market.
The Uber deal: The two companies plan to start deliveries in Dallas and Houston by the end of the year using a smaller, short-distance drone for groceries, takeout, and retail orders. They aim to reach one million drone deliveries per day by the end of 2029.
The backstory: Founded in 2014, the San Francisco startup first used fixed-wing drones to deliver blood transfusions to hospitals in Rwanda, where regulation was friendlier. In 2023, it won clearance from the Federal Aviation Administration to fly commercial deliveries beyond a pilot's line of sight, then expanded to food and small goods in Texas and Arkansas.
By the numbers: Zipline has raised about $2 billion to date, including $200 million in March and $600 million in January. Backers include Fidelity ManagementDealroom has a profile for this one. Try Dealroom →, Valor Equity Partners, Tiger Global ManagementDealroom has a profile for this one. Try Dealroom →, and Paradigm. The lead investor on the new round couldn't be learned.
Why it matters: At $1 billion, this would rank as the largest Series I round ever raised by a US robotics company, based on a sample of nine comparable deals. It signals renewed venture appetite for delivery startups, a sector with mixed results in recent years.
What could go wrong? The round is still in talks and hasn't closed. Delivery startups have struggled with unit economics, and the Uber partnership's 2029 target hinges on scaling a technology that remains costly.
The signal: Doubling a valuation to $20 billion suggests investors now see drone delivery as a mass market rather than a niche. If costs keep falling, Zipline's bet on regulatory groundwork abroad could pay off at scale at home.
Read more: The Information, Bloomberg
Image credit: Zipline
