Kalshi has reportedly moved to close funding at a USD 40 billion valuation, with Sequoia Capital and Wellington Management in talks to lead.
The deal is expected to be Kalshi's last private raise before an initial public offering (IPO), which could take place as early as 2027. Sequoia Capital and Wellington Management are in discussions to lead the round.
Valuation trajectory and financial metrics
The proposed valuation would be close to four times the USD 11 billion that investors assigned to Kalshi in December 2025. It would also be almost double the USD 22 billion valuation at which the company raised capital in March 2026.
Investor interest is partly linked to the company's efficiency. Documentation viewed by Bloomberg indicates gross margins of about 90%. As of August 2026, Kalshi's annualised revenue run rate stood at approximately USD 4 billion, according to a person familiar with the figures.
Kalshi was founded in 2018 and lists contracts on outcomes ranging from elections to film awards. Over the past year, however, sport has accounted for most of the activity on the exchange. Wagers on football games, the World Cup, and other sporting events have pushed trading volumes to repeated records. User-compiled data on Dune Analytics shows that Kalshi's trading volume surpassed USD 40 billion in August 2026, four times the level recorded six months earlier.
Competitive and regulatory context
Kalshi's main competitor, Polymarket, has grown at a slower pace. It is finalising its own round at a USD 21 billion valuation, led by 1798 Capital, according to Bloomberg. If both deals close on the reported terms, Kalshi would be valued at nearly twice its rival.
Both platforms are regulated in the US as financial exchanges by the Commodity Futures Trading Commission (CFTC). Kalshi operates as a designated contract market under CFTC oversight, so it can offer contracts nationwide under a single set of federal rules. Traditional sportsbooks, by contrast, answer to state gaming regulators and must operate within requirements that vary from state to state. Investing.com described Kalshi's federal regulatory status as a structural advantage behind its growth, particularly as sports contracts have become its main source of volume.
IPO timeline
In June 2026, Tarek Mansour, CEO of Kalshi, confirmed to CNBC that the company was considering a public listing but ruled out a debut in 2026. Earlier media reports had suggested an IPO in 2027 or 2028. With the new round reportedly positioned as the final step before a listing, and a flotation anticipated as soon as next year, market expectations appear to be shifting towards the earlier end of that range.
