Kalshi lands $40B valuation in latest funding round

Kalshi has secured $1 billion in new funding at a $40 billion valuation, as the prediction market operator pushes further into traditional financial trading.

The valuation is almost 82% higher than in May, when a Coatue-led round valued Kalshi at $22 billion. This time Sequoia Capital and Wellington Management led the investment, bringing total funding raised by the New York company to about $3.6 billion.

After receiving CFTC approval this year, Kalshi began offering perpetual futures, starting with crypto before adding equity indexes and metals, and now competes with established exchanges like CME Group and Intercontinental Exchange. It reports more than 30 million accounts and over $1 trillion in annualized trading volume. Part of the new funding will go toward serving hedge funds, trading firms, and other institutional clients.

Kalshi stated:

“We’ll also invest in international expansion, with a focus on Latin America and Europe.”

Sports contracts, which made up as much as 70% of Kalshi’s estimated $4 billion annualized revenue in July, remain under legal pressure. Utah has filed charges against the company, CEO Tarek Mansour and executive Luana Lopes Lara, while Nevada, New York and three Native American tribes have also challenged its operations. Kalshi argues its contracts are swaps under CFTC oversight, and Mansour has said he is prepared to take the dispute to the Supreme Court.