Kalshi seeks funding at $40 billion valuation, widening lead over rival Polymarket

Kalshi is seeking to raise fresh capital at a valuation of about $40 billion, nearly doubling the $22 billion valuation it targeted in its previous funding round, according to a Financial Times report citing people familiar with the matter.

The prediction markets platform could close the fundraising as soon as the third quarter of this year, FT said.

If completed, the deal would widen Kalshi's valuation lead over rival Polymarket, which was last reported to be seeking funding at $15 billion. The two platforms have emerged as the dominant names in the prediction markets sector, while many other entrants have increased the industry's competitive landscape.

Kalshi's previous funding round, which valued the company at $22 billion, attracted a roster of high-profile investors including Philippe Laffont's Coatue Management, Sequoia Capital, Andreessen Horowitz and Morgan Stanley.

Competition in the sector has intensified as firms race to capture users and expand product offerings.

Kalshi operates as a federally regulated exchange in the United States, a distinction that has helped it attract mainstream investors and institutional backing. Meanwhile, Polymarket, which uses blockchain infrastructure and cryptocurrency-based settlement, has gained popularity among crypto traders and has become widely followed during recent election cycles.

The fundraising discussions come as Kalshi's management also begins weighing a public listing. Earlier on Wednesday, chief executive Tarek Mansour said the company is considering an eventual initial public offering, though not before 2027.

"A company of our financial profile with the rate of growth that we're seeing, that sort of conversation has to happen," Mansour said during an interview on CNBC . "People start asking that question. And we're basically thinking about it, but obviously, we don't have an answer yet."

Kalshi didn't immediately respond to a request for comment.

In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.

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