Kalshi announced a $1 billion Series F funding round on Thursday at a $22 billion valuation, led by Coatue, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley $MS, and ARK Invest, the company said.
The valuation doubles Kalshi's worth from five months ago, when the company raised a $1 billion Series E at an $11 billion valuation, according to TechCrunch. Kalshi also told Bloomberg that its annualized revenue exceeds $1.5 billion.
The raise comes as institutional activity on the platform climbs. Over the past six months, the platform's annualized trading volume climbed from $52 billion to $178 billion, a more than threefold increase, while institutional trading activity rose 800%, the company said. Kalshi said it accounts for more than 90% of prediction market activity in the U.S.
Kalshi plans to use the capital to expand services for hedge funds, asset managers, proprietary trading firms, and insurance companies, the company said. That includes block trading capabilities the company recently launched, new risk products, and deeper broker integrations.
"There are few categories in recent history that have scaled this quickly outside of AI," Kalshi CEO Tarek Mansour said in a statement. "Event contracts could become a trillion-dollar market, and we're still in the early stages of that transition."
Philippe Laffont, founder of Coatue, said in a statement that consumers have already embraced prediction markets and that institutions will follow.
At its core, Kalshi's business is a federally regulated exchange where event contracts are listed across a wide range of categories — including elections, economic indicators, sports, and weather — and where a contract's value is determined by whether a predicted outcome actually happens, according to CoinDesk.
The funding announcement arrives as Kalshi navigates an active legal and regulatory environment. Opposition from state authorities has mounted alongside Kalshi's growth, with Nevada, New Jersey, Illinois, and others taking legal action or ordering the platform to stop operating, on the grounds that certain event contracts function as sports betting without proper licensure. Kalshi's position is that as a federally licensed designated contract market, it answers to the CFTC alone, not to state-level gaming agencies.
A federal appeals court sided with Kalshi in a landmark ruling against New Jersey, holding that the Commodity Exchange Act gives the CFTC exclusive authority over contracts listed on a federally licensed designated contract market. The CFTC has also filed federal lawsuits against Arizona, Connecticut, and Illinois to block those states from enforcing their gambling statutes against prediction market platforms, framing the action as a defense of its exclusive regulatory authority under the Commodity Exchange Act.