Jan 13 (Reuters) - JetZero said on Tuesday it has raised $175 million in a series B financing round, as the California-based startup aims to advance the development of its blended-wing aircraft, designed to reduce fuel burn.

The latest funding round, at an undisclosed valuation, was led by investment firm B Capital, Northrop Grumman NOC.N, and venture capital arms of United Airlines UAL.O, 3M MMM.N and RTX RTX.N.

A new entrant in the aerospace sector, the company plans to take advantage of new jet shortages and the industry's efforts to achieve cheaper, more efficient flying.

It expects the new capital to help it accelerate the development of its prototype aircraft "Demonstrator", designed to achieve at least 30% improved aerodynamics compared to traditional tube and wing aircraft.

It said the prototype is on track for its first flight in 2027.

To date, JetZero has secured more than $1 billion in funding and commitments, including government grants, incentives and commercial backing, it said.

Last year, United Airlines made an investment in the startup that included a path for the airline to order up to 100 airplanes and an option for an additional 100.

The all-wing-design airplane maker last year said it would invest $4.7 billion over a decade on a production facility and headquarters in North Carolina.

The startup received a $235 million contract from the U.S. Air Force in 2023 to develop its demonstrator, and looks to enter commercial service in the early 2030s.

(Reporting by Anshuman Tripathy in Bengaluru; Editing by Vijay Kishore)

((Anshuman.Tripathy@thomsonreuters.com;))