Kalshi, a U.S. prediction market, is in talks to raise new funding at a valuation of about $40 billion, the Financial Times has learned.
The company could close the round as soon as Q3, the FT reported, citing people familiar with the matter. As of press time, Kalshi made no public statements on the matter.
- The talks come just weeks after Kalshi said it raised $1 billion at a $22 billion valuation.
- That round included Coatue, Sequoia Capital, Andreessen Horowitz, Morgan Stanley and other investors.
- Kalshi was first valued at $5 billion earlier last year, $11 billion in December 2025 and $22 billion last month.
Sports bets drive volume
The new valuation target comes just days after The Information reported that Kalshi had held early informal talks with investment banks about a possible IPO.
- The report said the company had passed $2 billion in annualized revenue, but any listing was unlikely before late 2027 or 2028.
Kalshi has grown from a niche elections and event-contract platform into a direct challenge to both gambling firms and traditional derivatives venues.
The company attracted more than $17 billion in trading volume last month, up from less than $5 billion a year earlier, according to the FT.
- Sports now account for about 65% of Kalshi's volume, the report said.
Still, that growth comes with a rougher data point for users as roughly two-thirds of bets on Kalshi lose money, the FT reported, citing a person familiar with the company's operations.