Zipline seeks $20 billion valuation in potential $1 billion funding round

Zipline is in preliminary discussions to raise approximately $1 billion, which could value the autonomous drone delivery company at nearly $20 billion. This target valuation represents a significant increase from the $7.6 billion valuation established in January.

Potential investors include venture capital firm Paradigm, which is reportedly in talks to lead the round, and Tiger Global Management. The company has already completed nearly 3 million deliveries across more than 140 million miles since its founding in 2014.

The push for expansion comes as the regulatory environment for drone logistics remains in flux. The Federal Aviation Administration (FAA) is currently reviewing a Zipline proposal to conduct up to 220,000 daily deliveries across five Texas metropolitan areas, including Houston, Austin, and San Antonio. This would be a substantial increase from the company's current authorization of roughly 30,000 daily deliveries in the Dallas-Fort Worth area.

Large-scale drone operations still await the finalization of Part 108, a long-anticipated FAA rule governing routine beyond-visual-line-of-sight operations. Until this rule is signed, the industry continues to operate under a patchwork of waivers and geographically limited approvals.