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Kalshi completes a $1 billion Series G financing at a post-money valuation of $40 billion

Kalshi announced on October 29, 2026, that it had completed a $1 billion Series G financing at a post-money valuation of $40 billion, led jointly by Wellington Management and Sequoia. Participants included Baillie Gifford, Stripes, Andreessen Horowitz, Coatue, Layer Global, Morgan Stanley Investment Management, Sequoia Global Equities, CapitalG, Hudson River Trading and Balyasny Asset Management.

The company said the funds will be used to accelerate the building of a next-generation financial exchange, expand index markets, single-stock perpetual futures and compute markets, and scale institutional business and international expansion, with a focus on Latin America and Europe. Previously, in May 2026, Kalshi completed a $1 billion Series F led by Coatue at a valuation of $22 billion.

Kalshi said its overall business annualized trading volume has exceeded $1 trillion, non-sports annualized revenue has exceeded $1 billion, and it has more than 30 million accounts, accounting for more than 75% of prediction market trading volume. Its commodities business generated more than $100 million in annualized trading fees within three months, annualized cryptocurrency trading volume reached $140 billion, and political-related volume exceeded $8 billion.

Original sources:

  1. Title: Building the next-generation financial exchange: Kalshi raises $1 billion at a $40 billion valuation Publisher: Kalshi Publication date: 2026-10-29 URL: https://news.kalshi.com/p/kalshi-series-g-40-billion-valuation Source type: official announcement Verification status: Full text read for this item, accessed on 2026-10-30 Supporting content: $1 billion Series G, $40 billion post-money valuation, Wellington and Sequoia as joint lead investors and list of participants; annualized trading volume over $1 trillion, non-sports annualized revenue over $1 billion, over 30 million accounts, over 75% of prediction market share; specific figures for commodities, crypto and politics; funds to be used for indexes, single-stock perpetuals, compute markets and institutional and international expansion

  2. Title: Kalshi raises $1 billion at $40 billion valuation as it expands beyond prediction markets Publisher: Reuters Publication date: 2026-10-29 URL: https://www.reuters.com/business/kalshi-raises-1-billion-40-billion-valuation-it-expands-beyond-prediction-2026-10-29/ Source type: media report Verification status: Summary read for this item, accessed on 2026-10-30 Supporting content: $1 billion financing, $40 billion valuation, Sequoia and Wellington as co-lead investors; up from a $22 billion valuation in May; expansion beyond prediction markets

  3. Title: Kalshi Secures $22 Billion Valuation in Coatue-Led Round Publisher: Bloomberg Publication date: 2026-05-07 URL: https://www.bloomberg.com/news/articles/2026-05-07/kalshi-secures-22-billion-valuation-in-coatue-led-round Source type: media report Verification status: Title and summary read for this item, accessed on 2026-10-30 Supporting content: May 2026 Series F led by Coatue, valuation at $22 billion (historical context, does not prove details of this financing)

ABAB AI Insight

Kalshi was founded in 2018 by Tarek Mansour and Luana Lopes Lara, and that year it entered Y Combinator. The two met at MIT. Mansour is from Lebanon and later moved to the United States; in its early years, the company pursued a regulation-first path, communicating with the CFTC for years before launching markets, and positioned itself as a regulated designated contract market (DCM). Its valuation was about $5 billion in October 2025, rose to $11 billion in December, reached $22 billion in its Series F in May 2026, and with this Series G it rose again to $40 billion within five months.

This equity financing was jointly led by Wellington and Sequoia, with participants including long-duration capital (Baillie Gifford) and institutions related to hedge funds and market makers (Hudson River Trading, Balyasny). The funds are explicitly intended to extend prediction markets into index markets, single-stock perpetual futures and compute pricing markets, and to strengthen institutional access and international retail expansion. The company says its annualized trading volume has exceeded $1 trillion, and the share of non-sports revenue is rising, indicating a shift in the revenue structure from sports-dominated to multi-asset.

Compared with Polymarket, Kalshi adheres to a U.S. federal regulatory path and has obtained CFTC-related product approvals, including perpetual futures, while Polymarket has long faced U.S. restrictions; compared with traditional exchanges such as CME Group, Kalshi started with event contracts and is trying to enter a broader uncertainty-pricing market through both retail and institutional channels. The jump in valuation has kept pace with trading-volume growth, but sports remain an important entry point, while non-sports and perpetual businesses are still at an early stage of scale.

A $40 billion valuation gives Kalshi capital on a larger scale to compete with traditional exchanges across product lines, while using prediction markets as liquidity and a user base. The institutional share, with non-market-makers accounting for about 25% of trading volume, and new markets such as compute will change its revenue and risk exposure structure; key points to watch are the actual trading volume in single-stock perpetuals and compute markets, as well as continued regulatory approvals.

ABAB News · Law of cognition

  1. In five months, valuation rose from $22 billion to $40 billion, as capital pushed prediction markets toward a multi-asset exchange.

  2. The regulation-first path has bought room for product expansion, but it has also embedded compliance costs into the valuation.

  3. After annualized trading volume surpassed $1 trillion, sports are still the entry point, while non-sports and institutional business are the structural turning point.