Kalshi Could Be Worth $40 Billion — And an IPO Might Be Next

TLDR

• Kalshi is in talks to raise new capital at a $40 billion valuation, nearly double its previous $22 billion valuation
• The funding round could close as soon as Q3 2026
• If completed, Kalshi’s valuation would have grown eightfold in under a year
• Kalshi’s CEO confirmed the company is considering an IPO, but not before 2027
• Kentucky recently sued Kalshi and four other platforms, accusing them of running illegal sports betting operations

Prediction market platform Kalshi is reportedly in talks to raise fresh capital at a $40 billion valuation. That is nearly double the $22 billion valuation from its last funding round, which closed just weeks ago in May.

The Financial Times first reported the news on Wednesday, citing people familiar with the matter. The round could close as soon as the third quarter of this year.

Kalshi’s May funding round — a $1 billion Series F — was led by Coatue Management. Other participants included Andreessen Horowitz, Sequoia Capital, Morgan Stanley, and Ark Invest.

If the new round closes at $40 billion, Kalshi’s valuation will have grown eightfold in less than a year. The company was valued at just $5 billion in October 2025.

Kalshi Pulling Away From Polymarket

The new valuation would put Kalshi well ahead of its main rival, Polymarket. Polymarket was last reported to be seeking funding at a $15 billion valuation in April.

The two platforms have traded places as market leaders over the past year. Polymarket held the lead in trading volume through most of 2024, driven by election-related activity. Kalshi overtook it around September 2025 after partnering with Robinhood to offer sports outcome contracts.

As of May 2026, Kalshi posted monthly notional trading volume of $17.9 billion. Polymarket recorded $7.1 billion over the same period, according to Token Terminal data.

Kalshi operates as a federally regulated exchange in the US. Polymarket uses blockchain infrastructure and settles trades in cryptocurrency.

IPO on the Horizon

Kalshi CEO Tarek Mansour confirmed on Wednesday that the company is thinking about going public. Speaking on CNBC, he said an IPO is being considered but would not happen before 2027.

Kalshi was founded in 2018 and launched publicly in July 2021.

The prediction markets space is drawing wider attention. Meta CEO Mark Zuckerberg has reportedly directed staff to build a rival prediction markets app called “Arena,” according to the New York Times. Exchange operator Cboe Global Markets also entered the space this week, launching “Cboe Predicts” with binary contracts tied to the S&P 500.

On the legal side, Kentucky sued five prediction market platforms last week, including Kalshi and Polymarket. The state accused them of running unlicensed sports betting operations.

The US Commodity Futures Trading Commission has pushed back, arguing it holds exclusive authority over these platforms. The CFTC sued Kentucky on Tuesday to block the state’s enforcement action.

Kalshi declined to comment on the reported fundraising discussions.

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