Kalshi targets $40B valuation, outpaces rivals, eyes IPO

Kalshi aims for a $40B valuation, nearly doubling its last round. Rapid growth and new products boost its lead over Polymarket. An IPO is considered after 2027.

Kalshi is seeking to raise new capital at a valuation of around $40 billion, nearly doubling its previous $22 billion valuation from just a month ago. The prediction markets company has experienced rapid growth, with monthly trading volumes exceeding $17 billion and annualized revenue surpassing $2 billion. This surge in activity has widened the gap between Kalshi and its main competitor, Polymarket, which is reportedly seeking funding at a $15 billion valuation. Kalshi's recent funding rounds have attracted major investors, including Coatue, Sequoia Capital, Andreessen Horowitz, and Morgan Stanley. The company is also considering an initial public offering, though not before 2027. Kalshi's expansion into new products, such as crypto perpetuals and multi-outcome contracts, has fueled its growth, even as it faces ongoing legal disputes with CME Group and several U.S. states. The new funding round could close as early as the third quarter, further cementing Kalshi's dominance in the prediction markets sector.