Zipline charts expansion of drone delivery with $600M in new funding

US autonomous air transport and equipment startup Zipline said Wednesday it will launch operations in Houston and Phoenix earlier this year, as part of an expansion that will be driven by $600 million in new sales.

The round, which values ​​the company at $7.6 billion, will be used to expand to four US states in 2026, the company said. Several existing and new investors, including Fidelity Management & Research Company, Baillie Gifford, Valor Equity Partners and Tiger Global participated in the financing.

Founded in 2014, Zipline has developed its own drone delivery ecosystem, including software for connecting, launching and landing, and aircraft. The company began selling its autonomous drones in 2016 donating blood in Rwanda. Today, Ziplines transport food, merchandise, agriculture, and medicine to five African countries, several cities in the United States, and Japan.

Last year, Zipline launched a home delivery service in the US that allows customers to order food and merchandise through an app. The home delivery service uses Zipline’s Platform 2 drones, which are designed to carry up to eight pounds and deliver to customers within a 10-mile radius. Its larger Platform 1 drones are used for long-haul deliveries to businesses, corporations and government that can travel up to 120 miles round trip. The P2 platform started in Pea Ridge, Arkansas and the Dallas-Fort Worth Metroplex with a Walmart, and more than 100 different types of restaurants, according to Zipline.

It has also announced plans to launch in Seattle. Other franchise partners include Panera, Chipotle, Crumbl, Blaze Pizza, Wendy’s, and Little Caesars.

The expansion of space in the United States has boosted Zipline’s shipping numbers. In 2024, the company completed the delivery of one million drones to customers; this week, Zipline said it surpassed 2 million shipments. The company also said its US deliveries have grown about 15% week over week for the past seven months.

Co-founder and CEO Keller Cliffton sees 2026 as the company’s launch year.

“Independent practices have been growing for more than a decade, and the past year has made it clear that when supplies are fast, clean, safe, and affordable, demand is not only growing, it’s growing exponentially,” Cliffton said in a statement. “In 2026 autonomous devices will be a daily necessity for people in several states in the U.S. The transition starts with Houston and our hometown of Phoenix, where we will begin serving earlier this year, and expand to more locations throughout the country throughout the year.”

Zipline isn’t alone in the industry that has just started shipping drones. Competitors include Flytrex, DroneUp, Amazon Prime Air, and Wings, an Alphabet subsidiary that has also partnered with Walmart. Wings announced plans to expand to 150 other Walmart stores until 2027.