Kalshi in talks to raise funds at $40 billion valuation: FT

Kalshi is in talks to raise funds at a valuation of $40 billion, the Financial Times reported on Wednesday.

The U.S.-regulated prediction market platform could close the new funding round as early as the third quarter of this year, the report said, citing sources familiar with the matter. Kalshi declined to comment on the report.

Kalshi's reported discussions of the upcoming raise follow its $1 billion Series F round disclosed last month, led by Coatue at a $22 billion valuation. The last funding round also included Sequoia Capital, Andreessen Horowitz, and Morgan Stanley as participants.

Kalshi's valuation has rapidly soared in the past year. The company's valuation stood at $5 billion when it raised $300 million in its Series D round in October 2025. Its rival, Polymarket, was last reported to be in talks to raise $400 million at a $15 billion valuation.

Meanwhile, Kalshi is also in early discussions with investment banks for a potential initial public offering, and surpassed $2 billion in annualized revenue, The Information reported last week. The firm's CEO, Tarek Mansour, also confirmed that it is considering an IPO, though he said it will not take place this year.

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In terms of trading volume, Kalshi remains in the lead over Polymarket. Kalshi has attracted $21.1 billion in volume so far this month, while Polymarket and its U.S. platform combined had around $9.7 billion, according to The Block's data dashboard. The gap between the volumes in the two platforms has been widening in the past few months.

Kalshi, federally regulated under the Commodity Futures Trading Commission, continues to battle multiple U.S. state regulators that seek to ban prediction markets on a regional basis. 

On Wednesday, Kalshi sued the state of Illinois over its bill requiring prediction market platforms to get a state license, as well as a 0.2% charge on the value of digital asset transactions or services provided to Illinois customers.