Kalshi Seeks $750 Million at $40 Billion Valuation

Kalshi is a financial prediction-market platform that allows users to trade contracts based on the outcomes of political, economic and other events. Its main rival is Polymarket. Kalshi's valuation and fundraising capacity reflect the prediction market's rapid expansion and bear on the two companies' race for users, trading volume and industry dominance.

Kalshi is in talks to raise a new funding round at a valuation of up to $40 billion, nearly double its valuation in the previous round. It plans to use the funding to widen its lead over Polymarket. Chief Executive Tarek Mansour said the company remained financially sound and was sustaining strong growth, and was considering pursuing an IPO after 2027.

Kalshi is a prediction-market platform regulated by the U.S. Commodity Futures Trading Commission (CFTC) that allows users to trade contracts based on sporting-event outcomes. Illinois has subjected such products to state sports-betting restrictions, sparking a dispute over whether federal derivatives oversight preempts state intervention. The outcome could also affect how prediction markets operate across states.

Kalshi recently sued Illinois officials to challenge a provision in the state's newly enacted budget bill that is scheduled to take effect on July 1. The company argues that restrictions on sporting-event contracts encroach on the CFTC's exclusive regulatory authority. It is seeking to block enforcement, saying the provision would immediately restrict its products and cause irreparable harm that monetary damages could not adequately remedy.

Kalshi is a prediction market regulated by the U.S. Commodity Futures Trading Commission (CFTC), allowing users to trade contracts on the outcomes of political, economic and sporting events. Its regulated status has helped it tap demand for sports betting, while both revenue and valuation have climbed. Its potential listing has also become an important gauge of prediction markets' move into mainstream finance.

As of July 2026, Kalshi's annualized revenue had surpassed $2 billion, about three times its level at the end of 2025, driven mainly by trading tied to sporting events including the NBA and World Cup. The company's valuation also doubled within six months to $22 billion. It has reportedly begun early, informal IPO talks with investment banks but has yet to announce a listing timetable.

Kalshi and Polymarket allow users to trade event contracts tied to political, economic and geopolitical outcomes. Kalshi is regulated by the U.S. Commodity Futures Trading Commission, while Polymarket began as a crypto-based platform. Rapid growth in trading volumes and revenue at both companies has propelled prediction markets from a niche tool into a hot fintech sector.

On March 7, 2026, The Wall Street Journal reported that Kalshi and Polymarket were each in talks to raise fresh funding at target valuations of $20 billion. On May 7, Kalshi formally confirmed that it had completed a $1 billion Series F round led by Coatue, raising its valuation to $22 billion — roughly double its level five months earlier.

Kalshi is an event-contract exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC), with markets covering elections and economic data. Traditional prediction markets require positions to be fully collateralized, limiting capital efficiency. The company raised $1 billion at an $11 billion valuation on December 2, 2025, making expansion into the institutional market a key driver of growth.

A National Futures Association (NFA) filing dated March 24, 2026, shows that Kalshi affiliate Kinetic Markets LLC has been approved to register as a futures commission merchant (FCM). The license will allow the platform to initially offer margin trading to institutional investors, enabling them to establish positions with less upfront capital. Chief Executive Tarek Mansour said the product would launch soon but did not disclose a launch date or leverage ratio.

Kalshi is a U.S. Commodity Futures Trading Commission-regulated event-contract exchange that lets investors trade yes-or-no contracts on outcomes including inflation and interest rates. Its partnership with major Brazilian brokerage XP Inc. marks the first extension of its localized product strategy beyond the United States. XP had 4.8 million active clients as of December 2025, providing Kalshi with a significant distribution channel.

Kalshi and XP International announced the strategic partnership on March 9, 2026. The initial rollout will be through XP-owned Clear Corretora, allowing selected Brazilian clients with XP international investment accounts to trade contracts on Brazilian inflation and interest rates. Kalshi users in the United States will also be able to participate. The companies did not disclose the value of the deal or an exact product launch date.