Kalshi Raises $1 Billion at a $40 Billion Valuation

Kalshi raised $1 billion in a Series G round at a $40 billion valuation on October 29, 2026 — up nearly 82% from $22 billion just five months ago — as the prediction-market operator pushes beyond event contracts into single-stock perpetuals, leveraged contracts and institutional trading. The round was co-led by Sequoia Capital and Wellington Management.

What happened

Kalshi announced on Thursday, October 29 that it had closed a $1 billion Series G at a $40 billion post-money valuation, according to Reuters. Tiger Global Management and Dragoneer Investment Group also took part, Reuters reported, citing a person familiar with the matter. The company release, covered by Blockchain Reporter, listed additional backers including Baillie Gifford, Andreessen Horowitz, Coatue, CapitalG, Morgan Stanley Investment Management, Hudson River Trading and Balyasny Asset Management.

It is Kalshi's second $1 billion round in five months. In May, Coatue led a $1 billion Series F at a $22 billion valuation, Covers reported. The path has been steep: $5 billion in October 2025, $11 billion in December, $22 billion in May, and now $40 billion — an eightfold rise in about a year, as Unchained detailed from the company's own announcements.

Why it's blowing up

The numbers behind the valuation are what traders are sharing this weekend. Kalshi said its overall annualized trading volume now exceeds $1 trillion, its non-sports businesses generate more than $1 billion in annualized revenue, and its crypto trading volume has reached $140 billion annualized. It says it accounts for over 75% of prediction-market trading volume. One tally put that share at 75.7% in the 30 days to October 29 — $91.7 billion of $121.2 billion across nine venues.

Volume records keep falling. Kalshi's busiest World Cup day, July 5, saw $608 million in single-day volume. On October 24, it recorded $5.1 billion in contracts bought and sold in one day, helped by college football, the NFL and heavy trading ahead of the November 3 U.S. midterms. CEO Tarek Mansour has called this "the first prediction market election," arguing that market prices are now institutionalized and shown to mainstream audiences.

At $40 billion, Kalshi is now valued above Flutter and DraftKings combined — about $24 billion together at the October 29 close, according to iGaming Express. On October 26, S&P Dow Jones Indices also announced a collaboration making Kalshi a preferred licensed platform for event contracts linked to its indices.

Key facts

• Raise: $1 billion Series G, $40 billion post-money valuation, announced October 29, 2026.
• Leads: Sequoia Capital and Wellington Management co-led; Tiger Global and Dragoneer also participated.
• Previous mark: $22 billion in May 2026 — the new valuation is nearly 82% higher in about five months.
• Scale: Annualized trading volume above $1 trillion; non-sports annualized revenue above $1 billion; about 500 institutional clients as of September, accounting for roughly a quarter of volume excluding market makers.
• New products: Single-stock perpetual futures, leveraged event contracts and a market for trading compute prices, alongside an institutional push.

Beyond prediction markets

Kalshi called event contracts a starting point. In 2026 it moved into perpetual futures — derivatives with no expiry date — after approval from the Commodity Futures Trading Commission, starting with crypto and expanding into equity indexes and metals, Reuters reported. That puts the New York-based company in more direct competition with traditional exchange heavyweights such as CME Group and Intercontinental Exchange, the parent of the New York Stock Exchange.

The valuation comes with a legal fight attached. A day before the raise was announced, Utah's attorney general brought criminal charges against Kalshi and its co-founders, Tarek Mansour and Luana Lopes Lara, alleging the company illegally promoted online gambling. Kalshi argues federal law, not state gambling rules, governs its contracts, and the CFTC has asked a federal judge to halt Utah's civil case. Critics of prediction platforms argue the products resemble gambling — a debate now sitting alongside a $40 billion price tag.

What's next

Kalshi said the money will fund product development, institutional sales and international expansion. The immediate test is next week: the November 3 midterms are expected to be the biggest prediction-market election yet. After that, the question investors are asking is whether a public listing follows. In June, Mansour said Kalshi was weighing an IPO, though not before 2027. A $40 billion private mark makes that conversation harder to postpone. This report describes what happened and why markets reacted; it is not a recommendation to buy, sell or hold any security or contract.

FAQ

How much did Kalshi raise and at what valuation?

Kalshi raised $1 billion in a Series G round at a $40 billion post-money valuation, announced on October 29, 2026, co-led by Sequoia and Wellington.

How fast has Kalshi's valuation grown?

Very fast: $5 billion in October 2025, $11 billion in December, $22 billion in May 2026, and $40 billion now — nearly 82% higher in five months.

What will Kalshi do with the $1 billion?

The company plans to fund single-stock perpetuals, leveraged event contracts, a compute-price market, its institutional business and international expansion.

Why is Kalshi facing charges in Utah?

Utah's attorney general alleges Kalshi illegally promoted online gambling through its sports contracts. Kalshi argues its contracts are governed by federal law and regulated by the CFTC.

Sources: Reuters via WNCY, Unchained, Covers, Blockchain Reporter, iGaming Express.