Kalshi in Talks to Raise Funds at $40 Billion Valuation

Kalshi is in talks to raise funds at a valuation of $40 billion, the Financial Times reported on Wednesday. The U.S.-regulated prediction market platform could close the new funding round as early as the third quarter of this year, according to sources familiar with the matter cited by the FT. The discussions follow Kalshi's $1 billion Series F round disclosed last month at a $22 billion valuation, reflecting the platform's rapid growth in the competitive prediction markets sector.

Kalshi Raised $1 Billion Series F at $22 Billion Valuation Last Month

Kalshi's reported discussions of the upcoming raise follow its $1 billion Series F round disclosed last month, led by Coatue at a $22 billion valuation. The funding round also included Sequoia Capital, Andreessen Horowitz, and Morgan Stanley as participants. Kalshi's valuation stood at $5 billion when it raised $300 million in its Series D round in October 2025. Its rival, Polymarket, was last reported to be in talks to raise $400 million at a $15 billion valuation.

Kalshi in Early IPO Discussions and Surpassed $2 Billion Annualized Revenue

Kalshi is in early discussions with investment banks for a potential initial public offering and surpassed $2 billion in annualized revenue, The Information reported last week. The firm's CEO, Tarek Mansour, confirmed that the company is considering an IPO, though he said it will not take place this year.

Kalshi Trading Volume Reaches $21.1 Billion This Month

Kalshi has attracted $21.1 billion in volume so far this month, while Polymarket and its U.S. platform combined had around $9.7 billion, according to The Block's data dashboard. The gap between the volumes in the two platforms has been widening in the past few months. Kalshi is federally regulated under the Commodity Futures Trading Commission and continues to battle multiple U.S. state regulators that seek to ban prediction markets on a regional basis.

Kalshi Sued Illinois Over State Licensing Bill on Wednesday

On Wednesday, Kalshi sued the state of Illinois over its bill requiring prediction market platforms to get a state license, as well as a 0.2% charge on the value of digital asset transactions or services provided to Illinois customers.

FAQ

What valuation is Kalshi seeking in its upcoming funding round?

Kalshi is in talks to raise funds at a valuation of $40 billion, according to a Financial Times report citing sources familiar with the matter. The platform could close the funding round as early as the third quarter of this year.

How does Kalshi's trading volume compare to Polymarket?

Kalshi has attracted $21.1 billion in trading volume so far this month, while Polymarket and its U.S. platform combined had around $9.7 billion, according to The Block's data dashboard. The gap between the two platforms has been widening in recent months.