Prediction market operator Kalshi has secured $1 billion in a new funding round, bringing its total valuation to $40 billion. The investment was co-led by Sequoia Capital and Wellington Management, with additional backing from Tiger Global Management and Dragoneer Investment Group.
The company's valuation has grown significantly, rising from $22 billion in May 2026 to the current $40 billion. This follows a previous $1 billion financing round led by Coatue Management earlier this year. Kalshi’s valuation has increased eightfold since October 2025, when it was valued at $5 billion.
Kalshi intends to use the fresh capital to expand its financial product offerings. Plans include developing leveraged event contracts, perpetual futures for individual stocks, and markets for trading AI computing capacity. The platform aims to compete directly with established exchanges like CME Group and Intercontinental Exchange.
The firm is actively growing its institutional business, which already includes approximately 500 entities. As of September, these institutional clients accounted for 25% of the platform's trading volume, excluding market makers. Kalshi has also surpassed competitor Polymarket in market share.
Despite growth, the company faces legal challenges. The attorney general of Utah recently filed criminal charges against Kalshi and two executives, alleging illegal online gambling promotion. Kalshi asserts its operations fall under the Commodity Futures Trading Commission regulatory framework.
CEO Tarek Mansour has mentioned the possibility of an initial public offering, though he noted in June that such a move would not occur before 2027. The company continues to operate under federal oversight while navigating ongoing disputes with state authorities regarding the regulation of event contracts.
