Zipline, the autonomous drone delivery startup, has raised $1.5 billion in funding, boosting its valuation to $21.5 billion. The recent funding round was led by Paradigm, WCM Investment Management, and Layer Global, with notable participation from investors such as Valor Equity Partners, Fidelity, Uber, Tiger Global, J.P. Morgan, ARK Invest, and Salesforce Ventures. Zipline plans to use the new capital to expand manufacturing in the U.S. and scale up its drone delivery network nationwide.

In a major expansion of its relationship with Walmart, Zipline and the retail giant announced a new multi-year partnership to establish 300 drone delivery sites across the United States. This is a substantial increase from the current 21 active sites the companies operate jointly. The collaboration, originally started in 2021, aims to enhance Walmart’s delivery capabilities by integrating Zipline’s drone logistics technology more broadly.

Since its founding in 2014, Zipline has evolved from medical deliveries in African countries like Rwanda, Ghana, and Nigeria to a growing presence in the U.S. and other international markets. The company secured a critical FAA Part 135 air carrier certification in 2022, enabling it to conduct long-range commercial drone deliveries. Zipline’s drones currently deliver a range of products including food, retail items, agricultural goods, and healthcare products across multiple countries.

The startup operates two types of drones: Platform 2 drones handle deliveries of up to eight pounds within a 10-mile radius for home customers, while the larger Platform 1 drones support long-range deliveries up to 120 miles round trip primarily for enterprise and government clients. Between March and October of this year, Zipline grew its share of delivery revenue from 10.8% to 34.9%, and the infusion of new funding is expected to accelerate this growth further.