Kalshi Seeks $750 Million in New Financing at a $40 Billion Price Tag

Prediction marketplace platform Kalshi is reportedly in advanced talks to raise $750 million in a new funding round. The move comes barely a day after the CFTC ordered the company to keep up its operations despite mounting legal pressure from state regulators.

Kalshi eyes new funding round at a $40 billion valuation

Sources say Kalshi is nearing the completion of a $750 million raise in the coming weeks, with talks reaching an advanced stage. According to a scoop by The Information, Sequoia Capital and Wellington Management are tipped to be the co-lead investors in the latest funding round.

If completed, Kalshi’s valuation will be pegged at $40 billion, doubling its present market value of $22 billion. Back in May, Kalshi raised $1 billion at a $22 billion valuation, while its previous $1 billion raise in December 2025 was at an $11 billion valuation.

Sequoia Capital participated in both funding rounds, while its managing partner Alfred Lin sits on Kalshi’s board. Meanwhile, Wellington Management has no prior investment in Kalshi, but the asset management giant has made a streak of sizable investments in tech companies ahead of their initial public offerings.

However, the exact details of the incoming raise are still under wraps, with sources in the know hinting that the funding size is still subject to change depending on the outcome of negotiations.

Chances are the incoming raise will be the last private investment round for Kalshi before it goes public. Already, Kalshi has reportedly held “informal conversations” with banks for an IPO, with experts predicting that the platform will go public in 2027.

Kalshi has flipped Polymarket to become the leading prediction market by volume, justifying the size of its projected valuation. Polymarket is also eyeing a $1 billion raise at a $20 billion valuation, significantly less than Kalshi’s.

Kalshi trading volume. Source: DeFi Rate

Prediction markets boom alongside fresh legal troubles

The size of Kalshi’s incoming funding round is tied to the surge in interest around prediction markets. During the 2026 FIFA World Cup, prediction marketplaces saw their volumes surge by over 75% in a single month, buoyed by sports wagers. 

Particularly, Kalshi’s annualized revenue soared to over $4 billion in July, driven by FIFA World Cup wagering. Expansion into products tailored for hedge funds, trading firms, and insurance corporations has contributed to the glowing figures for Kalshi.

Amid the glowing numbers, Kalshi is fighting a raft of legal battles of its own. FlightAware has opened a lawsuit against Kalshi, accusing the platform of using its data for prediction markets without proper consent.

Spotify has ordered Kalshi to remove its logo and state that there is no partnership between the platforms. Meanwhile, the row between Kalshi and New York has reached a climax, with the CFTC invoking extraordinary powers to keep the prediction marketplace platform running.

Polymarket is also dealing with its own fair share of regulatory problems after facing a ban in the Czech Republic for running an illicit gambling operation. Recently, JPMorgan severed ties with Polymarket over regulatory concerns, joining a growing list of companies distancing themselves from prediction marketplaces.