Kalshi has announced a $1bn Series F funding round which values the prediction market operator at $22bn, which the company said it would use to unlock “access to trillions of dollars in capital”.
The New York-based firm said the new capital would allow it to increase adoption among hedge funds, insurance companies, trading firms and asset managers, and to expand its product portfolio.
Those product enhancements include block trading, soon-to-launch risk products and “deeper broker integrations tailored to institutional demand”.
The Series F round, led by Coatue Management solidifies Kalshi’s $22bn valuation originally reported by Bloomberg and the Wall Street Journal last month.
Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest also participated in the round.
In December, Kalshi closed its Series E funding round, snaring $1bn in capital which valued the business at $11bn.
For comparison, Flutter’s market cap is $17.6bn and DraftKings’ currently stands at $12.5bn.
In the past 12 months, amid the rapid growth of prediction markets, Flutter’s shares have fallen almost 60% to $101.20 while DraftKings stock is down 28.7% to $25.22.
Kalshi said over the past six months, institutional trading volume on the platform has increased 800%, while annualised trading volume has more than tripled from $52bn to $178bn.
The firm added that trading on its platform constituted 90% of prediction market activity in the US and the “majority” of global trading volume.
Kalshi’s primary rival, Polymarket, is yet to fully return to the US despite having acquired QCEX last year to ramp up its launch.
The operator, also based in New York, uses its decentralised platform that uses Polygon for its global operations.
In April, it was reported Polymarket was in talks with investors to raise $400m at a valuation of $15bn. Polymarket was backed by New York Stock Exchange owner ICE with $2bn in funding last year, valuing the company at $8bn.
In the US, the likes of DraftKings, Flutter and Fanatics have all moved into the prediction markets space from their online sports betting bases.
Flutter is planning to spend up to $300m on FanDuel Predicts in 2026, while DraftKings CEO Jason Robins said in the company’s Q1 earnings this week that DraftKings Predictions can take a “leadership position” in sports predictions.
Tarek Mansour, Kalshi CEO and co-founder, said: “There are few categories in recent history that have scaled this quickly outside of AI.
“Event contracts could become a trillion-dollar market, and we’re still in the early stages of that transition.”
Philippe Laffont, Coatue founder, added: “Kalshi is building the leading platform for trading in real-world events. Consumers have already embraced it, and we believe institutions will follow.”
Kalshi remains in legal disputes with various state regulators who accuse the platform of offering gambling products which normally require licences in the jurisdiction, or which are outright illegal.
The prediction markets platform maintains it does not offer gambling, but trading which is federally regulated by the Commodity Futures Trading Commission.
Concerns over insider trading also persist. The US Senate banned its members and staff from using prediction markets at the start of this month.
The post Kalshi hits $22bn valuation after confirming $1bn Series F funding round first appeared on EGR Intel.
CEO and co-founder Tarek Mansour argues event contracts “could become a trillion-dollar market”, as New York-based firm reveals annualised trading volume sitting at $178bn
The post Kalshi hits $22bn valuation after confirming $1bn Series F funding round first appeared on EGR Intel.