Kalshi Raises $300 Million in Series D Funding
Kalshi, a U.S.-based prediction market, has raised $300 million in a Series D round. The funding values the company at $5 billion. Kalshi plans to expand globally as prediction markets gain popularity.
The funding round was led by Sequoia Capital and Andreessen Horowitz. Other investors include Paradigm, CapitalG, Coinbase Ventures, and Spark Capital. Kalshi aims to open its platform to users in over 140 countries. This will allow global trading on events like politics, sports, and world news.
Kalshi is on track to reach $50 billion in annualized trading volume. It now holds more than 60% of the global prediction market. In September, Kalshi surpassed its main rival Polymarket in trading activity. It recorded nearly double Polymarket’s volume, according to data from Dune.
Growth Driven by Sports Betting
Sports betting has significantly contributed to Kalshi’s growth. The U.S. sports betting market is now worth $13.7 billion. This market expanded after the Supreme Court legalized sports betting in 2018. Kalshi offers sports-related contracts, including complex bets called parlays. These options have attracted new users and boosted trading volume.
Dustin Gouker, a sports betting consultant, noted that many Robinhood users now trade directly on Kalshi. This shows how prediction markets are becoming mainstream.
Crypto Integration and Regulatory Updates
Kalshi is moving into cryptocurrency through a partnership with ZeroHash. This will allow users to deposit cryptocurrencies on the platform. John Wang, Kalshi’s new crypto lead, said at Solana APEX that crypto is essential for building new financial products on Kalshi.
Wang encouraged developers to propose ideas like pushing data onchain and tokenizing positions on Kalshi.
Kalshi has faced regulatory challenges over its sports contracts in some U.S. states. However, the Commodity Futures Trading Commission (CFTC) has cleared its election-related offerings. This regulatory clarity supports Kalshi’s continued growth.
