Kalshi nears $1 billion raise at $40 billion valuation

Kalshi is in final-stage talks to raise about $1 billion at a valuation of roughly $40 billion, a financing that would lift the prediction-market operator’s value by about 80% from its May round.

Tiger Global Management and Dragoneer Investment Group are among the prospective investors, while Sequoia Capital and Wellington Management have also been in discussions about participating. The financing has not been completed and both its size and valuation remain subject to negotiation.

As we reported Aug. 12, Kalshi was already in talks to raise capital at a $40 billion valuation. CoinDesk separately reported that Sequoia and Wellington were considering leading an advanced round initially discussed at $750 million, with scope for a larger amount.

Sequoia is an existing Kalshi investor, and Alfred Lin, one of its co-leaders, sits on the company’s five-member board.

Kalshi last raised $1 billion in May at a $22 billion valuation. A $40 billion deal would therefore nearly double its valuation within a few months, although no final terms have been announced.

The fundraising talks come after a sharp increase in Kalshi’s reported business activity. The company’s annualized revenue reached $4 billion in July, primarily supported by betting on the 2026 World Cup. Sports contracts account for more than 80% of Kalshi’s trading volume.

Kalshi has increased its trading share relative to Polymarket over the past year, according to Dune Analytics data. Sequoia has said Kalshi claims 95% of the U.S. prediction-market market, while the company is the leading platform by revenue, ahead of Polymarket.

The company is seeking to broaden beyond prediction and event contracts into financial and economic markets, a move that puts it in greater competition with established derivatives-exchange groups including CME Group and Intercontinental Exchange. Kalshi operates under Commodity Futures Trading Commission oversight.

Its sports-related contracts remain subject to regulatory disputes. On Sept. 25, the U.S. Court of Appeals for the Sixth Circuit ruled that Ohio and Tennessee could regulate those contracts, after Kalshi argued they fell under CFTC jurisdiction. The decision sits alongside differing outcomes in Nevada and New Jersey cases involving regulatory authority.

Kalshi has also held early discussions about an initial public offering. Chief executive Tarek Mansour said in June that the company was considering an IPO in 2027.