Kalshi Raises $1B Series G at $40B Valuation Led by Sequoia, Wellington

Kalshi, the New York-based prediction market exchange, has raised $1 billion in a Series G round at a $40 billion post-money valuation. The round was co-led by Wellington and Sequoia, the company announced Oct. 29.

Baillie Gifford, Stripes, Andreessen Horowitz, Coatue, Layer Global, Morgan Stanley Investment Management, Sequoia Global Equities, CapitalG, Hudson River Trading and Balyasny Asset Management also participated. Tech Funding News reported, citing Reuters, that Tiger Global and Dragoneer also participated, though neither appears in Kalshi's own investor list. The outlet put the new valuation roughly 82% above the $22 billion mark Kalshi reached in May.

From $2 Billion to $40 Billion in 16 Months

Founded in 2018 by MIT classmates Tarek Mansour and Luana Lopes Lara, Kalshi has repriced at a pace few private companies match. Tech Funding News tracks its valuation from $2 billion in June 2025 to $5 billion in October 2025, $11 billion in December 2025 and $22 billion in May 2026. Bitcoin.com News reported that the May round was itself a $1 billion raise led by Coatue, making this Kalshi's second billion-dollar round in roughly five months.

The Numbers Behind the Round

Kalshi says it now handles more than $1 trillion in annualized trading volume, counts more than 30 million accounts and carries over 75% of prediction market trading volume. Its non-sports business has passed $1 billion in annualized revenue.

By category, the company cites $140 billion in annualized crypto trading volume, more than $8 billion in politics, and over $100 million in annualized trading fees from commodities within three months of launch. Perpetual futures have logged $83 billion in volume and more than 500,000 traders since debuting a few months ago. International retail, live in more than 140 countries for a year, is approaching $100 million in annualized fees. On the institutional side, about 500 entities were active in September, and entities other than market makers accounted for about 25% of exchange volume.

Where the Money Goes

Kalshi plans to use the capital to grow the exchange and roll out new products, including indices built with S&P, single-stock perpetual futures and compute markets. It will also expand institutional sales, distribution and product development for hedge funds, prop trading firms and financial institutions, and push further internationally with a focus on Latin America and Europe.

Why It Matters

The raise lands as Kalshi's legal fights intensify. Inc. reported that Utah has filed criminal charges against the company and two executives under the state's gambling prohibition, and that Kalshi separately announced tighter protections for 18- to 20-year-old traders, including a $2,500 monthly deposit limit.

That context explains the emphasis in this announcement. Bitcoin.com News, citing earlier reports, said sports contracts have at times accounted for about 65% of Kalshi's revenue. By leading with non-sports revenue, institutional flow and products like indices and compute markets, Kalshi is making the case that it is a financial exchange, not a sportsbook with a different label. Tech Funding News, citing Bloomberg, reported this is likely the last private round before a potential IPO as early as 2027, which means the regulatory question and the growth story now have to be answered together.

Source

Kalshi News — Building the next-generation financial exchange: Kalshi raises $1 billion at a $40 billion valuation