Kalshi Raises $1 Billion at $40 Billion Valuation in a Series G Funding Round

Prediction market platform Kalshi has raised $1 billion in a Series G funding round that values the company at $40 billion. The round was co-led by Wellington Management and Sequoia Capital, with participation from several other major investment firms.

Announced on Thursday, October 29, the funding marks a sharp increase from Kalshi’s $22 billion valuation in its previous $1 billion round in May 2026. The company is now using its growing position in prediction markets to expand into a broader financial trading platform.

Kalshi also reported that its annualized revenue from non-sports markets has exceeded $1 billion. The figure highlights the company’s effort to attract activity beyond sports-related contracts, which have played a major role in the recent growth of prediction markets.

Kalshi secures $1 billion from major investors

The Series G round was co-led by Wellington Management and Sequoia Capital. Other participants included Baillie Gifford, Stripes, Andreessen Horowitz, Coatue, Morgan Stanley Investment Management, Sequoia Global Equities, CapitalG, Hudson River Trading, and Balyasny Asset Management.

The latest financing values Kalshi at $40 billion, an increase of approximately 82% from its $22 billion valuation in May.

The funding gives the company additional capital to develop its products, strengthen its institutional business, and expand into new financial markets. It also reflects growing investor interest in platforms that let users trade contracts tied to real-world events and economic outcomes.

Kalshi has attracted attention as prediction markets have expanded across sports, politics, economics, and other categories. However, its latest valuation does not guarantee future growth, and the business continues to face regulatory and competitive challenges.

Non-sports markets generate more than $1 billion in annualized revenue

Kalshi said its non-sports markets now generate more than $1 billion in annualized revenue. This is a notable milestone as the company looks to broaden its business beyond sports-related trading.

Non-sports contracts can cover political outcomes, economic indicators, cryptocurrency prices, and other events. Users buy and sell contracts based on whether a specified outcome will occur, with prices reflecting the market’s implied probability.

Annualized revenue is a run-rate measure based on activity over a particular period. It is not the same as revenue already earned over a full year, nor does it represent profit.

The company’s claim also refers specifically to non-sports markets. It should not be interpreted as Kalshi’s total annualized revenue, which has previously been reported at a higher level with sports contracts contributing significantly to activity.

The distinction matters because sustained growth outside sports could help Kalshi diversify its revenue sources and attract users who are interested in financial and economic events rather than sporting outcomes.

Kalshi expands beyond prediction markets

Kalshi has been moving toward a broader exchange model. In 2026, the company expanded into perpetual futures, initially offering cryptocurrency-related products before adding markets linked to equity indexes and metals.

Perpetual futures are derivatives that do not have a fixed expiry date. They allow traders to maintain positions for extended periods, and some products use leverage, which can amplify both gains and losses.

The company has also been developing its institutional offering, targeting professional trading firms and other financial participants. Its latest funding round can support that expansion as it competes with established exchanges and other platforms seeking to combine event contracts with more traditional financial products.

The direction reflects a wider shift in the market: prediction platforms are increasingly seeking to become places where users can trade views on a range of events and financial assets, rather than focusing on a single category.

Phantom and the NBA bring Kalshi more exposure

Kalshi’s expansion is taking place alongside new distribution and commercial partnerships.

Phantom recently expanded access to Kalshi-powered prediction markets for eligible users in the United States, allowing them to access contracts covering cryptocurrency prices, sports, politics, and other events through the wallet’s app. 

Read: Phantom rolling out Kalshi prediction markets to eligible US users.

The NBA has also named Kalshi and Polymarket its preferred prediction market exchanges, giving both platforms access to official league data and promotional opportunities under agreements that include market-integrity requirements. We recently covered the development in its report on the NBA’s partnerships with Kalshi and Polymarket.

These developments could help prediction markets reach more users. However, broader distribution does not eliminate the risks associated with event contracts, including potential losses, liquidity limitations, and uncertainty over how some products should be regulated.

Regulatory challenges remain

Kalshi’s growth comes as prediction market operators face scrutiny over whether certain contracts, particularly those tied to sports, should be treated as financial products or gambling.

The company operates under federal commodities-market oversight in the United States, but disputes with state authorities have continued. On October 27, Utah’s attorney general brought criminal charges against Kalshi and two executives, alleging illegal promotion of online gambling, according to Reuters. The allegations are not a final legal determination.

Such disputes could affect how prediction markets operate in individual jurisdictions and how quickly platforms can expand their offerings. The outcome may also influence the broader industry as operators seek to establish themselves as financial exchanges rather than traditional sportsbooks.

Kalshi’s new capital provides resources for expansion, but its longer-term growth will depend on user demand, product execution, competition, and the regulatory environment.

What Kalshi’s $40 billion valuation signals

Kalshi’s latest funding round shows that major investors are willing to commit substantial capital to prediction markets and their potential evolution into broader trading platforms.

Its claim of more than $1 billion in annualized revenue from non-sports markets suggests that demand is extending beyond sports contracts. Combined with new distribution partnerships and its expansion into derivatives, the company is positioning itself to serve a wider range of users.

The key test will be whether Kalshi can sustain that demand, diversify its revenue, and navigate regulatory disputes while competing with other prediction platforms and established financial exchanges.