Kalshi is looking to raise fresh capital at a valuation of around $40 billion, almost doubling the $22 billion valuation it targeted in its previous funding round, according to a Financial Times report citing people familiar with the matter.
The prediction markets platform could close fundraising as early as the third quarter of this year, the FT said.
If completed, the deal would widen Kalshi’s valuation advantage over rival Polymarket, which was last reported seeking $15 billion in financing. The two platforms have become the dominant names in the prediction markets sector, while many other players 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 sector has intensified as companies compete to attract users and expand product offerings.
Kalshi operates as a federally regulated exchange in the United States, a distinction that has helped it attract mainstream investors and institutional backing. Meanwhile, Polymarket, which uses blockchain infrastructure and cryptocurrency-based settlement, has gained popularity among cryptocurrency traders and has been widely followed during recent election cycles.
