Kalshi Eyes $40B Valuation in New Funding Round, IPO Could Follow by 2027

TLDR

Table of Contents

Kalshi is negotiating a funding round at a $40 billion valuation, approximately twice its most recent $22 billion figure
The capital raise could finalize by the third quarter of 2026
This would represent an eightfold increase in company value within 12 months
CEO Tarek Mansour has publicly acknowledged IPO discussions, with a timeline no earlier than 2027
A lawsuit filed by Kentucky targets Kalshi and four additional platforms over alleged unlicensed sports wagering

The prediction market sector’s leading platform, Kalshi, is negotiating a significant capital raise that would establish a $40 billion company valuation. This represents approximately double the $22 billion price tag from its most recent funding round completed in May, just weeks earlier.

LATEST: 💰 Kalshi is seeking a $40B valuation in a new funding round, nearly double its previous $22B valuation, according to the Financial Times. pic.twitter.com/w1Jngb1AYf

— CoinMarketCap (@CoinMarketCap) June 25, 2026

The Financial Times broke the story Wednesday, drawing on information from sources with direct knowledge of the negotiations. According to these sources, the transaction could reach completion during Q3 of the current year.

Kalshi’s Series F round in May brought in $1 billion, with Coatue Management serving as lead investor. The round also attracted participation from heavyweight backers including Andreessen Horowitz, Sequoia Capital, Morgan Stanley, and Ark Invest.

Should negotiations conclude successfully at the $40 billion target, the company’s value will have multiplied eight times within a 12-month span. Just last October 2025, Kalshi carried a valuation of merely $5 billion.

Kalshi Widens Gap Over Polymarket

Achieving this $40 billion milestone would cement Kalshi’s position far ahead of its primary competitor, Polymarket. Reports from April indicated Polymarket was pursuing investment at a $15 billion valuation.

The competitive dynamic between these two platforms has shifted repeatedly throughout the past year. Polymarket maintained dominance in trading volumes for much of 2024, propelled largely by election-related activity. The tide turned around September 2025 when Kalshi surged ahead following its strategic partnership with Robinhood to deliver sports outcome contracts.

By May 2026, Kalshi reported notional trading volume reaching $17.9 billion for the month. During that same timeframe, Polymarket registered $7.1 billion, based on Token Terminal analytics.

A key distinction: Kalshi functions as a federally regulated US exchange. Meanwhile, Polymarket leverages blockchain technology and processes transactions using cryptocurrency.

Public Market Debut Under Consideration

CEO Tarek Mansour publicly acknowledged Wednesday that the company is evaluating a potential public offering. During a CNBC interview, he indicated an IPO remains under consideration but emphasized it would not materialize before 2027.

“A company of our financial profile with the rate of growth that we’re seeing, that sort of conversation has to happen,” Mansour said.

Kalshi’s origins trace back to 2018, with the platform launching to the public in July 2021.

The prediction markets industry is capturing increasing mainstream interest. Reports from the New York Times indicate Meta CEO Mark Zuckerberg has instructed his team to develop a competing prediction markets application dubbed “Arena.” Additionally, Cboe Global Markets made its entrance this week by unveiling “Cboe Predicts,” featuring binary contracts linked to the S&P 500.

On the regulatory front, Kentucky filed suit against five prediction market platforms last week, naming both Kalshi and Polymarket among the defendants. State authorities allege these platforms are conducting unlicensed sports betting activities.

The US Commodity Futures Trading Commission has countered this action, asserting its exclusive jurisdiction over these platforms. The CFTC filed suit against Kentucky on Tuesday seeking to halt the state’s enforcement efforts.

Kalshi has declined to provide comment regarding the reported fundraising negotiations.

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