Kalshi pursues fundraising at $40 billion valuation as IPO plans advance

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Kalshi fundraising & IPO plans

Highlights

Kalshi is negotiating a new funding round at a $40 billion valuation, up from a $22 billion valuation in its $1 billion Series F led by Coatue last month.
The company is engaging in preliminary discussions with investment banks regarding an IPO and has surpassed $2 billion in annualized revenue, according to The Information.
Kalshi filed a lawsuit against Illinois over a law requiring state licenses for prediction market platforms and imposing a 0.2% charge on digital asset transactions.

Fundraising talks and valuation trajectory

As reported by the Financial Times, Kalshi is in talks to raise fresh capital at a $40 billion valuation and could complete the round as early as the third quarter of this year, citing people familiar with the matter. The company declines to comment on the reported discussions.

The prospective raise follows Kalshi's $1 billion Series F round disclosed last month, which was led by Coatue at a $22 billion valuation. Sequoia Capital, Andreessen Horowitz and Morgan Stanley also participated in that financing.

Kalshi's valuation has climbed quickly over the past year. The company was valued at $5 billion when it raised $300 million in its Series D round in October 2025, while rival Polymarket is last reported to be seeking $400 million at a $15 billion valuation.

IPO preparations and regulatory pressure

Kalshi is also holding early talks with investment banks about a potential initial public offering, adding to signs that the company is preparing for a broader capital markets push. The Information reports last week that the platform has surpassed $2 billion in annualized revenue.

Chief executive Tarek Mansour confirms that Kalshi is considering an IPO, but says it will not happen this year. The company operates under federal regulation by the Commodity Futures Trading Commission, even as it continues to fight multiple U.S. state regulators seeking to restrict prediction markets locally.

On Wednesday, Kalshi sues the state of Illinois over legislation that would require prediction market platforms to obtain a state license. The bill also imposes a 0.2% charge on the value of digital asset transactions or services provided to Illinois customers.

In our earlier coverage of Kalshi traders’ 2026 U.S. GDP-growth odds, we highlighted how market pricing diverged from the Treasury Department’s more optimistic outlook for growth “with a three in front of it.” We also noted the mixed macro backdrop—firmer inflation and modest recent GDP readings—which helped explain why traders assigned relatively low probability to higher-growth scenarios.

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