Kalshi is in talks to raise new funding at a valuation of about $40 billion. Chief executive Tarek Mansour has confirmed that the prediction market platform is considering a future initial public offering. The company does not expect to list shares in 2026. A $40 billion valuation would make Kalshi one of the biggest private companies in betting and financial trading.
IPO plans take shape
Kalshi is considering an IPO as its revenue and trading activity increase. The company did not give a timetable for a listing and ruled out a public offering this year.
Kalshi has reportedly held early discussions with investment banks about a future float. Reports have suggested that an IPO could take place in late 2027 or 2028, although the company has not announced formal plans.
The company was founded in 2018 by Mansour and Luana Lopes Lara. It operates a CFTC-regulated exchange where users trade contracts on the outcome of sports, politics, economic data, weather and other events.
Funding could value Kalshi at $40bn
Kalshi is in talks to raise new funding at about a $40 billion valuation. The company declined to comment on the talks. The valuation would be almost double the $22 billion level from its May funding round. That round was led by Coatue and included Sequoia Capital, Andreessen Horowitz and Morgan Stanley.
Kalshi’s valuation was about $11 billion in December 2025 and $5 billion earlier that year. The company’s rise has followed rapid growth in sports event contracts and other prediction markets.
Trading volume expands
Kalshi recorded more than $17 billion in trading volume last month, compared with less than $5 billion a year earlier. Sports contracts have become a major source of activity on the platform.
The company also offers markets tied to elections, inflation, interest rates, weather and entertainment. Kalshi describes these products as event contracts regulated under federal commodities law.
The platform has used recent funding to increase block trading and develop services for institutional users. It is also working to attract market makers and other financial firms.
State cases continue
Kalshi is also facing disputes with state gambling regulators. Several states argue that sports event contracts are unlicensed betting products and should follow local gambling rules. Kalshi argues that its contracts are regulated by the Commodity Futures Trading Commission and cannot be blocked by state gambling laws. The company is involved in lawsuits and enforcement disputes in several states as courts review the federal and state limits on prediction markets.
