Prediction Market Kalshi Nears $1 Billion Raise at $40 Billion Valuation
The CFTC-regulated prediction market Kalshi is finalizing a $1 billion funding round, setting the stage for a potential public listing as early as 2027.
Kalshi is nearing the completion of a funding round worth approximately $1 billion, a move that would bring the company's valuation to roughly $40 billion. This capital raise is expected to be the final private financing for the New York-based prediction market before a potential IPO, which could occur as early as 2027.
The company's valuation has seen rapid growth over the past year. In December 2025, Kalshi was valued at $11 billion, followed by a $1 billion Series F round in May 2026 that pushed the valuation to $22 billion.
Key backers in the current round include Sequoia Capital and Wellington Management. Reports indicate that discussions are also ongoing with Tiger Global and Dragoneer Investment Group.
The surge in valuation follows a significant increase in trading activity, with volumes rising from $52 billion to $178 billion over a six-month period. Kalshi reports a gross margin of approximately 90%, and its revenue run-rate surpassed $2 billion in mid-2026.
A substantial portion of the platform's trading volume, estimated at 65-70%, is driven by sports-related contracts. Kalshi operates as a CFTC-regulated contract market, allowing users to trade on event outcomes as yes-or-no contracts rather than traditional sports bets.
While CEO Tarek Mansour has noted that an IPO is under consideration, he previously ruled out a public listing for 2026. The company's federal regulatory status remains a central part of its business model, distinguishing it from traditional betting operations.
The concentration of volume in sports contracts remains a key factor for investors, as the current valuation relies on the continued regulatory acceptance of these event contracts. Any future S-1 filing would likely require detailed disclosure regarding this dependency.
