Kalshi has reached a valuation of $22 billion after raising $1 billion in a new Series F funding round led by Coatue Management, doubling the company’s value in just five months.
The New York-based prediction market platform confirmed the funding on May 7. Major investors in the round included Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest.
This is Kalshi’s third major funding round in seven months. The company was valued at $5 billion less than a year ago before jumping to $11 billion in its previous Series E round. Its latest valuation now stands at roughly four times higher than it was under a year earlier.
Kalshi CEO Tarek Mansour said prediction markets are growing rapidly and could eventually become a trillion-dollar industry.
The company’s growth numbers have been strong. Annualized trading volume reportedly climbed from $52 billion to $178 billion within six months, while institutional trading volume surged by 800% during the same period. Kalshi says it now handles more than 90% of prediction market activity in the United States and generates around $1.5 billion in annualized revenue from two million monthly users.
The company plans to use the new funding to expand services for hedge funds, trading firms, asset managers, and insurance companies. It also wants to grow its trading products, including block trading and deeper broker integrations.
Despite the rapid expansion, Kalshi continues to face regulatory pressure. Several US states, including Nevada, New Jersey, and Illinois, have challenged some of its event contracts, arguing they may resemble unlicensed sports betting. Kalshi maintains that its platform operates legally under the oversight of the Commodity Futures Trading Commission.
The company is also reportedly exploring crypto perpetual futures trading, which could place it in direct competition with major crypto exchanges like Binance, Coinbase, and Kraken.
