Key Takeaways:
Kalshi is seeking to raise fresh capital at a valuation of about $40 billion, nearly doubling the $22 billion valuation from its previous funding round, according to a Financial Times report citing people familiar with the matter.
The prediction markets platform could close the fundraising as soon as the third quarter of this year, FT said. A successful deal would widen Kalshi's valuation lead over rival Polymarket, which was last reported to be seeking funding at $15 billion.
Kalshi's previous funding round, which valued the company at $22 billion, attracted a roster of high-profile investors including Philippe Laffont's Coatue Management, Sequoia Capital, Andreessen Horowitz and Morgan Stanley. The company was valued at $2 billion in June 2025 before climbing to $11 billion in December and then $22 billion in May.
The rapid valuation increase reflects the expansion of prediction markets across sports, politics, financial markets and entertainment. Kalshi recorded more than $17 billion in trading volume last month, compared with less than $5 billion during the same period a year earlier. The company said its annualized trading volume reached $178 billion during its previous funding announcement, more than triple the level recorded six months earlier. Sports-related contracts currently generate about 65 percent of Kalshi's total volume.
The fundraising discussions come as Kalshi's management also begins weighing a public listing. Chief executive Tarek Mansour said the company is considering an eventual initial public offering, though not before 2027.
"A company of our financial profile with the rate of growth that we're seeing, that sort of conversation has to happen," Mansour said during an interview on CNBC. "People start asking that question. And we're basically thinking about it, but obviously, we don't have an answer yet."
Kalshi operates as a federally regulated exchange in the United States, a distinction that has helped it attract mainstream investors and institutional backing. The company recently launched perpetual cryptocurrency futures after receiving approval from the Commodity Futures Trading Commission, a move that prompted CME Group to sue the regulator over the decision.
The company also faces legal challenges. Arizona filed criminal charges against Kalshi in March, accusing it of operating without a gambling license and offering prohibited election contracts. A Massachusetts judge separately ordered Kalshi to stop offering sports-related contracts in the state without a local gaming license. Kalshi is contesting both cases and maintains that its event contracts fall under the exclusive authority of the federal derivatives regulator.
This article is for informational purposes only and does not constitute investment advice.
