Kalshi Opens IPO Talks After Reaching $22 Billion Valuation

TLDR

• Kalshi has started early and informal IPO discussions with investment banks, according to a report by The Information.
• The prediction market platform now generates more than $2 billion in annualized revenue, up sharply from March levels.
• Sources indicate any potential IPO would likely take place in late 2027 or 2028.
• Kalshi is reportedly asking prospective banking partners to integrate with its platform for institutional client access.
• The company recently raised $1 billion in a Series F funding round, reaching a $22 billion valuation.

Kalshi has started early discussions with investment banks about a potential initial public offering, according to a report from The Information. The discussions remain informal, and any listing would likely occur in late 2027 or 2028. Meanwhile, the company continues to expand its trading activity, revenue, and institutional business.

Kalshi Explores Public Listing as Revenue Climbs

The Information reported that Kalshi executives have held preliminary talks with investment banks regarding a future IPO. The report cited people familiar with the company’s financial position. However, Kalshi declined to comment on the reported discussions when contacted by The Block.

The report said Kalshi now generates more than $2 billion in annualized revenue. That figure marks a sharp increase from the $1 billion annualized revenue run rate reported in March. The growth followed stronger trading activity tied to NBA and World Cup prediction markets.

Kalshi has also asked potential banking partners to connect with its platform. The move would allow institutional clients at those banks to access trading services directly. Even so, sources indicated that any public offering remains at least a year away.

Funding Round Lifts Valuation to $22 Billion

The IPO discussions follow Kalshi’s recent $1 billion Series F funding round. Coatue led the financing, while Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest participated. As a result, the round increased Kalshi’s valuation to $22 billion.

Kalshi said institutional trading volume rose 800% during the six months ending in early May. During the same period, annualized trading volume increased from $52 billion to $178 billion. The company said it would use the new capital to expand institutional products and infrastructure.

The firm plans to target hedge funds, insurers, asset managers, and trading firms. It also intends to strengthen trading systems and broaden product offerings. Those efforts support its growing institutional business.

Prediction Market Growth Draws Legal Attention

Kalshi and Polymarket remain the largest prediction market platforms by trading volume. According to The Block’s data dashboard, Kalshi recorded $16.81 billion in monthly volume during May. That figure increased from $14.81 billion in April.

Polymarket posted $7.08 billion in volume in May. The platform reported $9.01 billion in April. The figures show that both companies continue attracting large trading activity.

At the same time, prediction markets face increasing political and legal scrutiny. Earlier this week, U.S. gaming groups sent a letter to the Senate. The organizations urged lawmakers to prohibit prediction markets linked to sports and casino-style wagering.

Kentucky recently filed lawsuits against Kalshi, Polymarket, and related entities. State officials alleged that the companies operated unlicensed sports betting and gambling platforms. Several other states have taken similar actions.

The Commodity Futures Trading Commission has maintained that prediction markets fall under its authority. The agency argues that the Commodity Exchange Act grants it exclusive oversight. It has also sued several states that attempted to restrict prediction market operators.

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