Kalshi secures $1 billion in funding at a $40 billion valuation as it expands into markets beyond prediction trading

Kalshi has secured $1 billion in a new funding round, bringing the prediction-market startup's valuation to $40 billion, the company announced on Thursday. The latest investment comes as Kalshi accelerates its expansion beyond event contracts and moves to compete more directly with established traditional exchanges.

The New York-based company is looking to move beyond its original focus on sports and election prediction markets and develop into a multi-asset trading platform. This expansion puts Kalshi in more direct competition with major exchange operators, including CME Group (CME.O) and Intercontinental Exchange (ICE.N), the parent company of the New York Stock Exchange.

The funding round was co-led by Sequoia and Wellington, with Tiger Global Management and Dragoneer Investment Group also participating, according to a source familiar with the matter.

The latest financing arrives just over five months after Kalshi secured another $1 billion in a funding round led by Coatue, which valued the company at $22 billion. Its valuation has since climbed nearly 82%, reaching the current $40 billion mark.

In 2026, Kalshi entered the perpetual futures market after receiving approval from the Commodity Futures Trading Commission for the products. The company first introduced cryptocurrency perpetual contracts before extending its offerings to equity indexes and metals.

Perpetual futures, commonly known as "perps," are derivative contracts without an expiration date, allowing traders to maintain positions indefinitely without needing to roll them over. These contracts can also offer significant leverage, which amplifies both potential profits and losses.

However, prediction-market platforms such as Kalshi and Polymarket continue to face criticism from opponents who argue that their products resemble gambling and may contribute to addictive behavior.

Earlier this week, Utah's attorney general filed criminal charges against Kalshi and two senior executives, alleging that the company illegally promoted online gambling.

Prediction markets have attracted growing attention since the previous U.S. presidential election. According to data from Dune Analytics, Kalshi has surpassed rival Polymarket in market share over the past year. Meanwhile, Polymarket has encountered delays in launching its U.S. platform and remains subject to a Commodity Futures Trading Commission investigation.