Prediction platform Kalshi secures $1B funding at $40B valuation, non-sports revenue surpasses $1B annually

Prediction platform Kalshi secures $1B funding at $40B valuation, non-sports revenue surpasses $1B annually

Wellington Management and Sequoia Capital lead latest investment round for Kalshi as the prediction market company grows its financial product suite and posts increasing revenue figures.

According to a Reuters report published Thursday, Kalshi, a platform specializing in prediction markets, has successfully completed a funding round worth $1 billion that values the company at $40 billion. This comes as the organization broadens its reach from sports betting into the realm of financial markets.

Wellington Management and Sequoia Capital jointly led the Series G funding round. According to reporting from The Wall Street Journal, Kalshi disclosed that its markets unrelated to sports are now producing in excess of $1 billion on an annualized revenue basis.

Initial reports of the financing emerged in September, during which time Kalshi was pursuing $1 billion at an identical valuation. The announcement made on Thursday provided confirmation that the funding round had reached completion.

The company's valuation stood at $22 billion this past May, following the conclusion of a $1 billion Series F financing round that Coatue Management spearheaded. During that period, the organization disclosed that its annualized revenue run rate had surpassed $1.5 billion.

Data from DefiLlama indicates that Kalshi has processed trading volume of roughly $15.8 billion throughout the preceding 30-day period.

Expanding partnerships amid legal challenges

The company has persisted in broadening its partnership network even as it faces increasing legal challenges throughout the United States. This past Monday saw the NBA designate both Kalshi and Polymarket as its preferred exchanges for prediction markets, while simultaneously S&P Dow Jones Indices formed a partnership with Kalshi aimed at introducing its financial benchmarks into event contracts.

These partnership agreements have materialized during an ongoing legal battle concerning the question of whether Kalshi's sports-related contracts fall under the purview of state gambling regulations or federal derivatives oversight. The company faced a lawsuit from Utah last week, which then triggered a separate legal action from the US Commodity Futures Trading Commission (CFTC) on Tuesday that aims to prevent state-level enforcement actions. The situation intensified on Wednesday when Utah elevated the conflict by bringing criminal charges against both Kalshi and its co-founders, as reported by Reuters.