Kalshi Secures $1 Billion, Surpasses Polymarket in Market Valuation

Kalshi raises $1 billion, boosting valuation to $22 billion, surpassing Polymarket.

The prediction platform Kalshi has raised over $1 billion in a new funding round, boosting its valuation to $22 billion, according to Bloomberg. 

A source from the agency revealed that the deal was led by Coatue Management. The previous round took place in December, when the startup was valued at $11 billion, with capital provided by Paradigm, Sequoia Capital, Andreessen Horowitz, and ARK Invest.

The Wall Street Journal reported plans to raise new capital in March. Journalists noted that Polymarket is also preparing a similar move to increase its market value from the current $9 billion to $20 billion.

Market Dynamics

Polymarket and Kalshi are two leaders in the growing prediction segment. As of March, the former holds 53.1% of the market, while the latter accounts for 39.3%. 

In February, trading volumes on the platforms exceeded a record $18 billion. This month, the figure has already reached $13.2 billion. Of this amount, Kalshi processed $6.9 billion, while Polymarket handled $6.3 billion. 

The majority of nominal turnover is attributed to Polymarket — $63.9 billion. Kalshi’s figure stands at $53.6 billion. The nearest competitor, the Opinion platform on BNB Chain, has a trading volume estimated at $23.2 billion. 

Meanwhile, Kalshi leads in open interest with $486 million: 

New Partnership 

MLB has made Polymarket its exclusive partner. The prediction platform will gain access to the sports organization’s data and branding, and will also work on limiting markets that “pose risks to the integrity of the game,” according to a press release. 

The agreement was made ahead of the new season and follows a series of scandals last year. At that time, pitchers were accused of taking bribes from players for certain types of pitches. Bets on individual actions and metrics are widespread on Polymarket.

In March, the prediction platform engaged the analytics company Palantir to identify suspicious sports bets.