Kalshi has raised $1 billion in its Series F funding round, achieving a valuation of $22 billion and enhancing its market position.
Kalshi, a prediction market platform, has successfully completed a Series F funding round, raising $1 billion and achieving a valuation of $22 billion.
The funding round was led by Coatue, with contributions from notable investors such as Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest. This funding marks Kalshi's third successful round in just seven months.
The capital raised will be directed towards improving services for institutional clients, including hedge funds, asset managers, and insurance firms. Additionally, Kalshi plans to introduce block trading tools, risk management solutions, and broker integrations.
Kalshi reported an impressive 800% increase in institutional trading volume over the past six months, with annual turnover rising from $52 billion to $178 billion. The platform currently dominates the U.S. prediction market, holding over 90% market share.
Project head Tarek Mansour noted that the growth in the prediction market is comparable to that of the AI industry, with potential for the segment to reach valuations of a trillion dollars.
In March, the platform recorded a total trading volume of $25.7 billion, largely fueled by bets on sports and cryptocurrencies. Since its inception, Kalshi and its main competitor, Polymarket, have collectively surpassed $150 billion in turnover.
As of now, Kalshi holds a 57.4% market share, while Polymarket commands 30.1%. In terms of nominal turnover, Polymarket leads with $82.59 billion compared to Kalshi's $75.9 billion. Polymarket is currently in discussions to secure $400 million in funding, which would value it at $15 billion if successful.
Analysts from Bernstein have previously projected that prediction platforms could evolve to a trillion-dollar market.
