Kalshi has raised $1 billion in Series G funding at a $40 billion post-money valuation as the prediction market company expands into a broader range of financial products and international markets. The round was co-led by Wellington and Sequoia. Additional investors included Baillie Gifford, Stripes, Andreessen Horowitz, Coatue, Layer Global, Morgan Stanley Investment Management, Sequoia Global Equities, CapitalG, Hudson River Trading, and Balyasny Asset Management.
Kalshi plans to use the financing to expand its exchange, introduce new asset classes, increase institutional adoption, and grow internationally.
The company said its annualized trading volume now exceeds $1 trillion, while non-sports annualized revenue has surpassed $1 billion. More than 30 million Kalshi accounts have been created, and the company said it represents more than 75% of prediction market trading volume.
Kalshi began with prediction markets but has been expanding into politics, cryptocurrency, economics, commodities, and perpetual futures.
Its commodities business reached more than $100 million in annualized trading fees within three months. Crypto trading volume has reached about $140 billion annualized, while political markets have surpassed $8 billion annualized.
Kalshi’s international retail operation is approaching $100 million in annualized trading fees about one year after launching in more than 140 countries.
The company’s perpetual futures business has also reached $83 billion in trading volume and attracted more than 500,000 traders since launching several months ago.
Institutional participation is increasing as well. About 500 entities were active on Kalshi in September, and institutional entities, excluding market makers, accounted for about 25% of total exchange trading volume.
Kalshi’s partner ecosystem includes Interactive Brokers, Marex, Clear Street, Cantor Fitzgerald, S&P, Nasdaq, Stripe, Public.com, Plus500, Wealthsimple, Alpaca, PayPal, and Block.
The company intends to accelerate development of additional products, including indices, single-stock perpetual futures, and compute markets. Kalshi recently announced a partnership with S&P to develop prediction-market-based indices.
The new capital will also support institutional sales, distribution, infrastructure, and product development aimed at hedge funds, proprietary trading firms, financial institutions, and other sophisticated market participants.
Kalshi additionally plans to expand internationally, with Latin America and Europe identified as priority markets.
The company said its broader objective is to evolve from a prediction market platform into a diversified financial exchange that allows individuals, businesses, and institutions to trade directly on events and risks that traditional financial products may not address.
