Zipline, a U.S. startup focused on autonomous drone delivery and logistics, has successfully secured an additional $200 million in funding as part of its Series H round, bringing the total amount raised in this round to an impressive $800 million. This latest investment was supported by several high-profile firms, including crypto investment company Paradigm, as well as Fidelity Management & Research Company, Baillie Gifford, Valor Equity Partners, and Tiger Global, which previously valued Zipline at $7.6 billion.
Founded in 2014, Zipline initially began its operations in Africa, delivering vital medical supplies, such as blood, in Rwanda. Over time, it has expanded significantly and now utilises its drones for the delivery of various products, including food and health supplies, across multiple countries, including five African nations and cities in the U.S. and Japan.
The newly acquired funds will fuel Zipline’s expansion into at least four new U.S. states this year, with Houston, Phoenix, and Seattle already identified as target markets. The company’s home delivery service, which launched last year, has shown remarkable growth, surpassing initial forecasts due to increasing delivery volumes. CEO Keller Cliffton highlighted that customer use of drones has risen, with many now ordering multiple times a day and opting for larger quantities.
Cliffton noted in a video message that the average order size has increased by over 20% recently, prompting Zipline to double the number of brands available on its platform in the coming month. The drones used for these deliveries are part of Zipline’s Platform 2, capable of transporting up to eight pounds within a 10-mile radius, while their larger Platform 1 drones handle longer-range deliveries exceeding 120 miles.
Despite this strong focus on the U.S. market, Zipline remains committed to expanding its services internationally. Cliffton announced a new national-scale contract in Rwanda, facilitating the launch of the Platform 2 delivery service in major cities. Additionally, a third distribution centre is set to be established to ensure that every hospital and health facility in the country is adequately served.
Overall, Zipline’s growth trajectory reflects its innovative approach to logistics and delivery, positioning the company as a leader in the drone delivery sector both domestically and abroad.
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