Kalshi raised $1 billion at a $40 billion valuation, eight times its October 2025 level, as the prediction-market company pursues expansion into financial products beyond event contracts.
The latest valuation compares with $22 billion in May and $5 billion in October 2025. Sequoia Capital and Wellington Management co-led the round, Kalshi announced Thursday.
Kalshi said in a blog post about the funding that prediction markets are a starting point for a wider exchange. Planned additions include leveraged contracts tied to events, perpetual futures linked to individual stocks and markets tracking compute prices. It also plans to put more funding into its institutional business. Kalshi introduced perpetual futures, its first product outside prediction markets, in late May, CNBC reported.
Activity around the 2026 FIFA World Cup and NFL season, along with election trading ahead of the U.S. midterms, helped drive growth since May, CNBC reported. The outlet said combo contracts, which resemble sportsbook parlays, also contributed to increased activity.
The company faces a legal dispute over sports-related event contracts. Two U.S. appeals courts ruled in August and September that states can regulate the contracts, while a third court sided with federal authority, CNBC reported. The outlet said a Supreme Court case is likely to resolve the disagreement but gave no schedule for a decision.
Kalshi co-founder and CEO Tarek Mansour said in a June CNBC interview that the company was considering a public listing, but not before 2027. CNBC disclosed that it has a commercial relationship with Kalshi involving customer acquisition and a minority investment.
