Drone delivery startup Zipline valued at $21.5 billion in latest funding round

Nov 5 (Reuters) - Zipline has raised $1.5 billion in its latest funding round, valuing the US drone delivery startup at $21.5 billion post-money — nearly tripling in about 10 months.

The funding comes as competition in drone delivery intensifies, with companies expanding their delivery networks, although regulatory approvals and community concerns over noise and safety remain barriers to broader adoption.

Here are some details:

• The funding round was led by Paradigm, WCM Investment Management, and Layer Global and drew participation from Uber, Tiger Global, J.P. Morgan, among others

• Zipline, which operates across four continents, was valued at $7.6 billion after raising $600 million earlier this year

• The company plans to use the funding to expand its US manufacturing capacity, hire more workers and develop a nationwide drone delivery network

• Companies such as Zipline say last-mile deliveries by air reduce some of the risks associated with human delivery, including delays caused by weather or road accidents

• Back in August, the company partnered with Uber to bring autonomous ​drone delivery to Uber Eats customers, with the ride-hailing giant also taking a strategic stake at an undisclosed valuation

• Amazon, meanwhile, is also stepping up its drone-delivery efforts, with plans to expand the service from 11 locations to about 500 US locales by year-end