Kalshi Raises $1B at $40B Valuation as It Pushes Beyond Prediction Markets

Kalshi has another $1 billion to build a business that extends beyond betting on elections and sports.

The company announced a Series G Thursday at a $40 billion post-money valuation, with Wellington Management and Sequoia Capital leading the round. The financing comes just over five months after another $1 billion raise valued Kalshi at $22 billion, up nearly 82%.

The new money will support prediction market growth, institutional adoption, international expansion, and products including indices, single-stock perpetual futures and markets tied to the price of computing resources.

It is a substantial vote of investor confidence while Kalshi’s sports contracts remain tied up in state enforcement fights. It also reinforces the company’s broader pitch: prediction markets are the starting point, not the whole exchange it wants to build.

Traditional finance investors join the round

The investor list includes:

• Andreessen Horowitz

• Baillie Gifford

• Balyasny Asset Management

• CapitalG

• Coatue

• Hudson River Trading

• Morgan Stanley Investment Management

That mix brings traditional asset managers and trading firms into a business still widely associated with political odds and sports contracts.

“What it means to us is we get the resources and the capital to build all the things that are on our product roadmap that our customers, both retail and institutional, want us to build,” co-founder and CEO Tarek Mansour told The New York Times.

Perpetuals and compute markets are next

Kalshi said annualized trading volume now exceeds $1 trillion across prediction markets, commodities, crypto and perpetual futures.

The product roadmap moves Kalshi further toward conventional financial markets.

Its proposed single-stock perpetuals would extend a push already underway with the US 500 stock-index perpetuals. The new funding announcement also identifies compute markets, giving customers a way to trade exposure to computing-resource prices, and a larger institutional offering.

CNBC reported that leveraged event contracts are also part of the planned expansion. Those are future product ambitions, not confirmation that every offering is available today.

Kalshi is raising money against the prospect of a broader exchange, not simply more volume on the same election and sports markets.

A bigger balance sheet does not settle the legal fight

The financing arrives as states continue challenging whether federal commodities regulation prevents them from applying gambling laws to Kalshi’s sports contracts, and an appearance with the U.S. Supreme Court appears imminent.

That legal uncertainty remains separate from the valuation. Investors can back the company’s growth while courts continue deciding where, and under what conditions, particular products can operate.

Expanding into additional financial products gives Kalshi more businesses to develop, but the announcement does not establish that diversification responds to state restrictions, or that those new products will be free of regulatory requirements.

An IPO is possible, not announced

The New York Times reported that the Series G is widely expected to be Kalshi’s last funding round before an initial public offering.

Mansour declined to say whether or when an IPO would happen, beyond acknowledging that “there’s been discussions.”

For now, the confirmed development is the financing: another $1 billion raised, a valuation nearly twice May’s level and a product roadmap reaching well beyond the markets that made Kalshi a household name.