Kalshi Raises $1 Billion to Expand Its Exchange Offering

Kalshi, a prediction-market operator, has raised $1 billion in a Series G funding round, valuing the company at $40 billion. The company is seeking to expand its business into a multi-asset financial exchange.

In its official announcement on 29 October, Kalshi said the round was co-led by Wellington Management and Sequoia, joined by Baillie Gifford, Andreessen Horowitz, Coatue, Morgan Stanley Investment Management and others.

The valuation is 82% higher than the previous $22 billion milestone reached in May when Kalshi raised another $1 billion. This latest funding round comes as the company positions prediction markets as the basis for a broader exchange offering.

Kalshi claimed that its annual trading volume exceeded $1 trillion across prediction markets, commodities, cryptocurrencies, and perpetual futures. It also reported annual revenue of more than $1 billion from non-sports markets and over 30 million accounts.

According to the official statement, the new capital will be used to support product development, institutional adoption and international expansion, particularly in Latin America and Europe. Kalshi also plans to add new products, including indices, single-stock perpetual futures and compute markets. It also recently announced a collaboration with S&P to build indices based on prediction markets.

The company’s growth comes as prediction markets are facing legal challenges from state regulators in the US, and regulatory uncertainty in international markets. Kalshi maintains that its contracts are financial products, not gambling.

The latest funding round demonstrates investor confidence in the sector’s growth potential, while the larger goals of Kalshi put it into closer competition with existing financial exchanges. The scaling capacity of Kalshi beyond event-based trading will require not only success in product marketing, but also navigating the regulatory environment.