Kalshi seeks $1B as valuation nearly doubles to $40B

Kalshi is in advanced talks to raise about $1 billion at a roughly $40 billion valuation, nearly doubling its valuation just months after its previous funding round, according to a Reuters report citing people familiar with the discussions.

Tiger Global Management and Dragoneer Investment Group are among the new and existing investors considering participating in the round, while Sequoia Capital and Wellington Management are in talks to lead it, according to the report.

The financing could be finalized within the coming weeks. It follows a $1 billion raise in May that valued Kalshi at $22 billion, highlighting how quickly investor expectations around prediction markets have risen.

Kalshi’s valuation has expanded sharply alongside its trading activity. The company was valued at just $2 billion in June 2025 after raising $185 million in a Paradigm-led round, meaning the latest discussions would put its valuation at roughly 20 times that level in little more than a year.

The New York-based company has also been expanding beyond the political and sports event contracts that helped popularize prediction markets. Kalshi is increasingly positioning itself as a broader trading venue, moving into markets tied to stocks and other financial assets and putting it into closer competition with established exchanges.

Its growth has also intensified its rivalry with Polymarket.

Polymarket raised $1 billion at a $15 billion valuation in April before entering another funding process over the summer. A later round led by 1789 Capital valued the company at about $21 billion, with roughly $1 billion of additional capital, according to Bloomberg. Bloomberg

Kalshi has meanwhile gained market share over the past year as prediction market volumes have accelerated. Reuters Breakingviews reported earlier this month that Kalshi’s weekly notional volume had increased roughly tenfold over the prior year. Reuters

The company is also beginning to consider the public markets. CEO Tarek Mansour has said Kalshi is thinking about an initial public offering, though not in 2026, while people familiar with the matter told Reuters the company has held early discussions about a potential listing in the coming years.

Any IPO would come as prediction markets draw increasing attention from traditional financial institutions and regulators. Platforms including Kalshi and Polymarket have expanded into contracts linked to individual stocks and corporate events, raising questions over how those products overlap with existing securities and derivatives rules. Reuters

Kalshi was founded in 2018 by MIT alumni Mansour and Luana Lopes Lara and operates as a Commodity Futures Trading Commission-regulated designated contract market.