Kalshi Raises Over $1 Billion, Surpassing Polymarket in Valuation

Prediction market platform Kalshi has completed a new funding round worth over $1 billion, doubling its market valuation to $22 billion, according to Bloomberg.

Funding Details and Prior Rounds

Bloomberg's sources indicate that Coatue Managementled the round. Kalshi's previous fundraise took place in December, when the startup was valued at $11 billion with backing from Paradigm, Sequoia Capital, Andreessen Horowitz, and ARK Invest.

The Wall Street Journal first reported Kalshi's plans to raise new capital earlier in March. The publication also noted that Polymarket was preparing a similar fundraise aimed at boosting its valuation from the current $9 billion to $20 billion.

Why This Matters

The prediction market sector is experiencing explosive growth, and the rivalry between Kalshi and Polymarket is shaping the trajectory of the entire industry. Kalshi's valuation doubling in just three months — from $11 billion to $22 billion — signals strong institutional appetite for event contract platforms. Despite commanding a larger market share, Polymarket now trails its competitor in overall valuation.

Market Share Breakdown

Kalshi and Polymarket dominate the rapidly expanding prediction market segment. As of March, Polymarket holds 53.1% of the market while Kalshi commands 39.3%.

Combined trading volume across these platforms set a record in February, surpassing $18 billion. In the current month, the figure has already reached $13.2 billion — with Kalshi processing $6.9 billion and Polymarket handling $6.3 billion.

In terms of cumulative notional volume, Polymarket leads with $63.9 billion compared to Kalshi's $53.6 billion. The third-place platform, Opinion on BNB Chain, has recorded $23.2 billion. However, Kalshi holds the lead in open interest at $486 million.

Polymarket Strikes Exclusive MLB Partnership

While competing for capital, Polymarket is also strengthening its position in the sports vertical. Major League Baseball (MLB) has selected the platform as its exclusive prediction market partner. Under the agreement, Polymarket will gain access to MLB data and branding while committing to restrict markets that pose risks to game integrity.

The partnership comes ahead of the new season and follows a series of scandals last year in which pitchers were accused of accepting bribes from players for specific types of pitches. Wagers on individual actions and performance metrics are widely available on Polymarket.

Earlier in March, Polymarket enlisted analytics firm Palantir to detect suspicious activity in sports betting — a move designed to build trust with sports organizations and regulators alike.