Zipline is exploring a new round of about $1 billion that would peg the drone delivery and logistics company at roughly $20 billion, according to people familiar with the talks. That price would be close to three times the $7.6 billion valuation the company received earlier this year in a financing aimed at expanding commercial deployment. The negotiations are still in early stages and the figures may change, the people said.
Representatives for Zipline and Paradigm would not provide a statement. Tiger Global Management didn't promptly return a request for comment.
Paradigm, already an investor in Zipline, is in discussions to lead the round, per people with knowledge of the matter. Prior backer Tiger Global Management is weighing participation as well. Among Zipline's leading backers are Valor Equity Partners and Sequoia Capital.
Zipline says it can bring meals to customers' doorsteps within 30 minutes or less while ensuring the food stays fresh. To run its drones, the company relies on systems such as fulfillment software, inventory management and airspace tools, and it says the service functions in rural communities as well as in cities. In August, Zipline announced a partnership with Uber Technologies Inc., which also invested in the company, aimed at expanding the ride hailing company's food-delivery operations; no valuation for that investment was made public. Uber co founder Travis Kalanick recently unveiled Atoms, a robotics company focused on food, mining and transportation. According to Zipline's website, the company has completed nearly 3 million deliveries over more than 140 million miles, and its customers include Chipotle Mexican Grill Inc., Jimmy John's and Walmart Inc.
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If this round prices near $20 billion, it would be a strong signal that investors are betting on logistics and autonomous delivery moving from experiments to everyday use. Watch where the final amount and valuation settle, since that can influence how similar private companies are marked and which public names people use as stand ins when they try to value the space.
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