Kalshi is seeking to raise new capital at a valuation of around $40 billion, almost double the $22 billion valuation it targeted in its previous funding round, according to a Financial Times report citing people familiar with the matter.
The market prediction platform could close fundraising as early as the third quarter of this year, the FT said.
If completed, the deal would widen Kalshi’s lead over rival Polymarket, which was last reported to be seeking $15 billion in funding. Both platforms have become the dominant names in the prediction markets industry, while many other entrants have increased the competitive landscape of the industry.
Kalshi’s previous funding round, which valued the company at $22 billion, attracted a roster of high-profile investors, including Philippe Laffont’s Coatue Management, Sequoia Capital, Andreessen Horowitz and Morgan Stanley.
Competition in the industry has intensified as companies race to capture users and expand their product offerings.
Kalshi operates as a federally regulated exchange in the United States, a distinction that has allowed it to attract traditional investors and institutional support. Meanwhile, Polymarket, which uses blockchain infrastructure and cryptocurrency-based settlement, has gained popularity among crypto traders and become widely followed during recent election cycles.
