Kalshi is reportedly seeking a $40B valuation in new funding, widening its lead over rival Polymarket as it also weighs a future IPO.
Prediction Markets News
Prediction market operator Kalshi is seeking to raise fresh capital at a valuation of about $40 billion, according to a Financial Times report citing people familiar with the matter. The figure would nearly double the $22 billion valuation the company targeted in its previous funding round.
The fundraising could close as soon as the third quarter of this year, the report said. If completed, the deal would widen Kalshi's valuation lead over rival Polymarket, which was last reported to be seeking funding at a $15 billion valuation.
Kalshi and Polymarket have emerged as the two dominant platforms in the prediction markets sector, even as competition in the space has intensified. Firms across the industry have raced to capture users and expand their product offerings.
Previous Funding Round Drew High-Profile Backers
Kalshi's previous funding round, which valued the company at $22 billion, attracted investors including Philippe Laffont's Coatue Management, Sequoia Capital, Andreessen Horowitz and Morgan Stanley.
Kalshi operates as a federally regulated exchange in the United States. That distinction has helped the platform attract mainstream investors and institutional backing. Polymarket, by comparison, uses blockchain infrastructure and cryptocurrency-based settlement, and has built a following among crypto traders, gaining particular attention during recent election cycles.
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Company Also Weighing Eventual Public Listing
The fundraising talks come as Kalshi's leadership also considers a public listing. Chief Executive Tarek Mansour said Wednesday that the company is weighing an eventual initial public offering, though not 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 during an interview on CNBC. "People start asking that question. And we're basically thinking about it, but obviously, we don't have an answer yet." Kalshi is eyeing a potential public debut in 2027, according to the Financial Times report.
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