Kalshi Closes $1B Series G at $40B Valuation, Up 82% Since May
Kalshi closed a $1 billion Series G at a $40 billion valuation, up nearly 82% since May. The cash funds stock perps, leveraged event contracts and AI compute markets as Utah and the CFTC fight over jurisdiction.
$1 billion raised. $40 billion valuation. Kalshi has closed its Series G, Reuters reported Thursday, as the prediction market platform pushes beyond sports into financial markets. That mark is up nearly 82% from the $22 billion set in May.
Wellington Management and Sequoia Capital co-led the round. Tiger Global Management and Dragoneer Investment Group participated. The financing was first reported in September, when Kalshi was said to be seeking $1 billion at the same valuation. Thursday's announcement confirmed it closed.
Non-sports revenue carries the pitch
Kalshi's non-sports markets now generate more than $1 billion in annualized revenue, according to The Wall Street Journal. In May, a $1 billion Series F led by Coatue Management valued the company at $22 billion, when its annualized revenue run rate exceeded $1.5 billion. In October 2025, the valuation was $5 billion.
DefiLlama data shows about $15.8 billion in trading volume over the past 30 days. Dune Analytics data cited by Reuters indicates Kalshi has overtaken Polymarket in prediction market share.
Where the money goes
Three new products: leveraged event contracts, perpetual futures on individual stocks, and markets on AI computing capacity. Kalshi is also expanding its institutional business. In September it said it worked with about 500 institutional entities, which made up 25% of trading volume excluding market makers.
Kalshi entered perpetual futures in May after CFTC approval. Crypto perps came first, then equity indexes, gold and silver. Stock perps and leverage put it in direct competition with CME Group, ICE and crypto-native platforms.
CEO Tarek Mansour has discussed a possible IPO but indicated in June that it would not come before 2027.
Legal fight runs alongside the raise
The money lands mid-fight. Utah sued Kalshi last week, and the CFTC sued on Tuesday to block state enforcement. On Wednesday, Utah filed 14 criminal charges against Kalshi and its two founders, accusing the company of illegally promoting online gambling.
Courts are split. Two US appeals courts ruled in August and September that states can regulate sports event contracts, while another appeals court earlier sided with Kalshi on federal precedence. That split raises the prospect of Supreme Court review. Kalshi maintains its products fall under the CFTC framework and are not conventional sports betting.
What it means
The raise prices Kalshi more like a derivatives venue than a sportsbook workaround. Over $1 billion in non-sports annualized revenue backs that read. So does the product roadmap.
Sports leagues are still engaging. On Monday the NBA named Kalshi and Polymarket preferred prediction market exchanges, and S&P Dow Jones Indices partnered with Kalshi to bring its benchmarks to event contracts. The unresolved state-versus-federal question is the main risk to the valuation.
