Kalshi raises $1 billion…valuation ‘jumps’ to $22 billion

Source

Doohyun Hwang

Summary

Kalshi reportedly secured about $1 billion in funding, winning a valuation of $22 billion.
Kalshi’s annualized revenue is said to be about $1.5 billion, while trading volume has topped $10 billion, underscoring strong growth momentum.
As some state governments label Kalshi “illegal gambling,” putting regulatory risks in the spotlight, the new CFTC chair was said to have taken a prediction-market-friendly stance.

Forecast Trend Report by Period

Prediction-market platform Kalshi has secured roughly $1 billion in funding, earning a valuation of $22 billion.

According to Bloomberg on the 19th (local time), Kalshi recently raised more than $1 billion in a new funding round. The financing nearly doubled the company’s valuation from $11 billion in December last year.

The round was led by global hedge fund Coatue Management. Previous investors include Paradigm, Sequoia Capital, Andreessen Horowitz (a16z), and ARK Invest.

Kalshi is a prediction-market platform that offers financial contracts allowing users to wager on the outcomes of real-world events. It has continued to grow since being founded in 2018, with user numbers and trading volume surging in particular after a court allowed trading tied to the outcome of the 2024 U.S. presidential election.

More recently, trading linked to sports results has accounted for a significant share of overall activity and has been expanding rapidly. As a result, established gambling operators are also rushing to introduce similar prediction-market services..

Kalshi’s annualized revenue is said to be around $1.5 billion. As of February, trading volume surpassed $10 billion, up about 12-fold from six months earlier.

However, regulatory risks are also coming into focus alongside the rapid growth. Some state governments have raised concerns over the potential use of inside information and market manipulation, labeling Kalshi “illegal gambling” and pursuing legal action. The Arizona attorney general recently filed criminal charges against Kalshi.

Kalshi denies the allegations. With the new CFTC chair also taking a prediction-market-friendly stance, a legal battle between regulators and state governments is expected to continue.

Wall Street’s interest remains strong. Susquehanna International Group and Jump Trading are acting as market makers on Kalshi, and Tradeweb Markets said in February that it would work with Kalshi to provide prediction-market data to clients of its bond-trading platform.