Quick take:
- The company plans to use some of the capital to expand its offering beyond the U.S. to more than 140 countries.
- The $5 billion valuation at the close of the funding is more than double the amount mentioned in the previous round, when it raised $185 million.
- The announcement comes just days after rival platform Polymarket revealed a $2 billion investment from NYSE owner, Intercontinental Exchange, at $8 billion valuation.
Kalshi has raised $300 million in a funding round backed by Sequoia Capital, Andreessen Horowitz (A16z), Paradigm, CapitalG, and Coinbase Ventures. The fundraising values the prediction markets startup at $5 billion, more than double its previous valuation of $2 billion announced in June when it raised $185 million.
The company plans to use the fresh capital to accelerate its global expansion to more than 140 markets, as it eyes opportunities beyond the U.S. market, the New York Times reported.
Kalshi, which reported $300 million in annualised trading volume last year, predicts $50 billion volume for the current year.
It comes amid the rising interest in prediction market trading, which has seen rival Polymarket pursue regulation through acquisitions and investments in the country.
Earlier this week, Polymarket received $2 billion investment from the NYSE owner, Intercontinental Exchange, for a 25% stake, with the two companies announcing a post-deal valuation of $8 billion.
Kalshi’s surge in transaction volume this year also comes after the company implemented sports-related contracts.
While Polymarket is trying to accelerate the process for its U.S. entry, Kalshi, initially operating only in the U.S., is looking beyond to go global.
Prediction markets gained popularity last year after traders on Polymarket correctly predicted Trump’s victory in the November General Election.
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