Kalshi, the prediction market platform, is reportedly pursuing additional funding that could elevate its valuation to around $40 billion, according to the Financial Times. This new valuation nearly doubles its previous worth of $22 billion, established last month during a $1 billion funding round involving notable investors such as Sequoia Capital, Andreessen Horowitz, Coatue, and Morgan Stanley.
The company has experienced remarkable growth, with its annualized trading volume reaching $178 billion by April 2026, a staggering 32-fold increase from the previous year. CEO Tarek Mansour indicated to CNBC that while Kalshi is contemplating an IPO, it has dismissed the possibility of going public in 2026, with potential plans for 2027 or 2028 instead.
Kalshi's rise comes at a time when it faces significant legal challenges in the U.S. regarding the classification of its prediction market contracts, particularly in relation to sports betting. The Commodity Futures Trading Commission (CFTC) and various state authorities are embroiled in a dispute over whether these contracts are regulated derivatives or illegal gambling. Recently, the CME Group has initiated legal action against the CFTC concerning Kalshi's futures contracts, which allow traders to speculate on cryptocurrency prices.
