Nikolas Sargeant
TL;DR
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Prediction marketplace Kalshi seeks to raise new funding at an approximately $40 billion valuation.
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Kalshi’s reported valuation reflects the firm’s rapid growth, as it reported a $5 billion valuation last October.
Prediction Market Giant Eyes Fresh Capital Raise
Kalshi is reportedly in discussions to raise new funding at a valuation of approximately $40 billion, according to a Financial Times report published on Wednesday.
Sources familiar with the matter told the publication that the U.S.-regulated prediction market platform could finalize the funding round as early as the third quarter of this year. Kalshi declined to comment on the reported fundraising discussions.
If completed, the raise would represent another dramatic increase in the company's valuation amid rapid growth in the prediction markets sector.
The reported fundraising effort comes just weeks after Kalshi announced a $1 billion Series F financing round.
The round was led by Coatue and valued the company at $22 billion. Existing and new investors participating in the raise included Sequoia Capital, Andreessen Horowitz, and Morgan Stanley.
Kalshi’s valuation trajectory has been striking over the past year. In October 2025, the company was valued at $5 billion when it secured $300 million in a Series D funding round. A successful $40 billion valuation would represent an eightfold increase in less than a year.
Kalshi Pulls Ahead of Rival Polymarket
Kalshi’s rapid rise comes as competition intensifies in the prediction market industry.
Its main rival, Polymarket, was recently reported to be seeking $400 million in fresh capital at a valuation of approximately $15 billion. However, Kalshi currently maintains a significant lead in both valuation and trading activity.
According to market data, Kalshi generated $21.1 billion in trading volume so far this month. By comparison, Polymarket and its U.S.-focused platform recorded roughly $9.7 billion in combined volume during the same period.
The gap between the two platforms has widened steadily in recent months as Kalshi continues to attract more user activity and liquidity.
Beyond fundraising, Kalshi is also laying the groundwork for a potential public listing.
Last week, The Information reported that the company has entered preliminary discussions with investment banks regarding a future initial public offering. The report also stated that Kalshi has surpassed $2 billion in annualized revenue, underscoring the platform’s growing scale.
Chief Executive Officer Tarek Mansour has confirmed that an IPO remains under consideration. However, he indicated that the company does not plan to go public this year.
