Polymarket Rival Kalshi Announced Hitting $11 Billion in Valuation as Prediction Markets Rise to Popularity

The swift rise in the popularity of prediction markets has propelled Kalshi, one of the sector's dominant platforms, to remarkable new heights.

After securing funding this autumn at a valuation of US$5 billion, the company has now raised yet another investment round and more than doubled its worth in less than two months.

On Tuesday, Kalshi announced that it had secured £756.1 million ($1 billion) in fresh capital, valuing the company at £8.3 billion ($11 billion) in what marks its third fundraising round this year.

The investment was led by Paradigm, an existing supporter, alongside participation from Sequoia Capital, Andreessen Horowitz, Meritech Capital, IVP, ARK Invest, Anthos Capital, CapitalG and Y Combinator.

A Booming Market Opportunity

'We're in a massive market with a massive opportunity,' said Tarek Mansour, co-founder and chief executive of Kalshi. 'We have to scale up to rise to that opportunity.'

Prediction markets, platforms that allow users to bet on outcomes such as elections, the Oscars or major news events, have grown into a substantial industry. According to data from independent providers, the top platforms now collectively generate several billion dollars in weekly trading volume. The success of Kalshi is emblematic of that broader surge.

Kalshi's soaring valuation has also made its founders, Mr Mansour and Luana Lopes Lara, paper billionaires. Together, they hold an estimated 20 to 25 per cent of the company, according to a person familiar with the firm's ownership structure.

Growth Fueled by Sports Betting and Parlays

The company has seen extraordinary momentum over the past year, bolstered by its move into complex sports wagers, particularly parlays. A significant portion of the platform's activity is now sports-related, experts in the field have noted.

Last month alone, Kalshi processed approximately £4.4 billion ($5.8 billion) in trading volume, a record figure and a 32 per cent increase on October, according to industry trackers.

'It's one of the fastest-growing companies we've ever seen,' said Matt Huang, co-founder and managing partner at Paradigm.

Media Integration: Kalshi Becomes Newsroom Tool

In a landmark move for the industry, Kalshi recently announced a data integration deal with CNN, making Kalshi the network's official prediction markets partner. Under the agreement, CNN will incorporate Kalshi's real-time probability data into its programming, including live broadcasts, digital journalism and social media platforms.

As part of the integration, CNN's chief data analyst will draw on Kalshi's streaming data to inform coverage of political, cultural and news-driven events. A dedicated news ticker powered by Kalshi will run in relevant segments, with journalists across the newsroom having access to real-time odds. This enables analysis that goes beyond what has already happened and offers a forward-looking lens on possible futures.

Kalshi views the collaboration as a major step in its ambition to become the world's most credible prediction market exchange.

Ambitious Expansion Plans

Kalshi intends to use its new investment to expand further by launching additional products and entering international markets. It is also pursuing more distribution partnerships with institutions such as brokerages, enabling its contracts to be traded with the same ease as traditional securities.

The combination of deeper liquidity, broader product offerings and increased visibility through media partnerships suggests Kalshi is positioning itself not merely as a niche exchange but as a serious competitor to established financial markets.

Tensions: Skepticism and Regulatory Pressure

Not everyone views prediction markets as a serious tool for hedging risk. Some analysts argue that most participants treat them as speculative bets rather than legitimate financial instruments.

Meanwhile, Kalshi faces mounting competition from rivals such as Polymarket, which is itself raising substantial capital and pursuing regulatory approval in the United States. The two firms are engaged in what resembles a fundraising arms race, each seeking dominance in the rapidly growing prediction market sector.

At the same time, prediction market platforms increasingly face legal and regulatory scrutiny, particularly when it comes to sports betting. State gaming authorities argue that these activities should fall under traditional gambling laws.

For Kalshi, the coming months may determine whether prediction markets truly enter the financial mainstream or remain a high-risk bet on the future as the company expands its offerings, brokers new distribution partnerships and rolls out live data integrations with major media organisations.