Kalshi is leading another round of investment funding, with the platform’s prediction markets and services valued at a gargantuan $40 billion.
The company’s new value nearly doubles the $22 billion it received in May, a Financial Times report said while citing people familiar with the situation. Fundraising could be completed before or during the third quarter of the year, the report noted.
Nearly $4 billion in funding
Kalshi’s supposed target price symbolizes the enormous growth the prediction industry experienced over the last year. It also positions Kalshi further ahead of its top rival, Polymarket, which last sought a valuation in April at a reported $15 billion.
The most recent round of investment drew $1 billion contributions from Coatue Management, Sequoia Capital and Morgan Stanley, among others.
Although that funding occurred one calendar month ago, Kalshi is still full-steam ahead with its plans to dominate prediction market trading. Another successful funding series would increase Kalshi’s total contributions to $3.7 billion since the platform launched in July 2021.
Kalshi going public?
Operating under the watchful eye of the Commodity Futures Trading Commission (CFTC), Kalshi’s prediction markets represent sports, entertainment, finance, politics, culture, weather, and other industries. Users buy and sell “Yes” and “No” contracts associated with different outcomes and eventually settle based on if an event did or did not occur as predicted.
Contract trading has emerged as a popular form of financial participation for customers, including those in states without legal sports betting. Kalshi and other operators’ prediction contracts in sports events allow users to risk and win or lose money, depending on the accuracy of their picks.
The increasing customer base and cash flow have led Kalshi to have conversations about going public.
“A company of our financial profile with the rate of growth that we're seeing, that sort of conversation has to happen,” CEO Tarek 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.”
Reports indicate that a public listing is unlikely before late 2027 or 2028.
Prediction Markets spark growth and controversy
According to Kalshidata.com, monthly volume on the platform reached $16.8 billion in May, with annualized revenue reaching $2 billion. To add to those figures, DeFi Rate revealed that Kalshi produced $87.8 billion in year-to-date, $23.9 billion in June, and $516.2 million in daily trades.
For comparison, DeFi Rate reported that Polymarket handled $33.5 billion in year-to-date trades.
Sports contracts spurred the growth, helping generate $5.1 billion in trades during the first week of the 2026 FIFA World Cup, hosted by the USA, Mexico, and Canada.
Sports event contracts only produced $23 billion in sports trades in 2025 after they took off around the time of the start of the NFL season. The sweeping momentum behind these contracts indicates they will smash that mark in 2026.
The growing popularity of these offerings has drawn the ire of state officials. After initially failing to make headway in court, states have implemented different measures in an attempt to regain control over prediction markets.
Minnesota issued an outright ban on trading in these markets; Illinois tacked on a sliding tax of 1.75-3.5% per transaction; and Kentucky approved an excise tax and ban on sports event contracts.
The CFTC, which has gone to bat for prediction platforms with increasing regularity as scrutiny picked up, filed lawsuits against all states mentioned above.
The Trade Handle Prediction Markets Take
Even though Kalshi is America’s leader in prediction markets, it’s startling to see it nearly double its valuation with only one turn of a calendar page. Prediction contracts aren’t taking hold in America — they are already entrenched in users’ preferences and are destined for continued growth if they aren’t subjected to stricter regulations.