Kalshi in Talks for $1 Billion Raise at $40 Billion Valuation

Kalshi is holding advanced discussions to secure approximately $1 billion in funding at a valuation approaching $40 billion, as reported by Reuters. That figure is nearly double its valuation from May.

Kalshi, a U.S.-based platform for trading on real-world events, would see its value rise by roughly $18 billion since May, an increase of about 82%.

What the Kalshi Valuation Implies for Revenue

Among the reported investors are Tiger Global and Dragoneer Investment Group. Sequoia Capital and Wellington Management are in discussions to lead the funding round.

Sacra, a research firm focused on private markets, estimates that Kalshi achieved $3.5 billion in annualized revenue in June. This compares with $735 million in 2025. At a $40 billion valuation, that estimate suggests a multiple of roughly 11 times revenue.

Kalshi's own May disclosure was more conservative, putting annualized revenue above $1.5 billion.

Sacra calculates that sportsbook operator DraftKings trades at about 2.1 times revenue. Sports contracts, however, account for roughly 80% of Kalshi's volume.

To match the DraftKings multiple at a $40 billion valuation would call for about $19 billion in annual revenue. That is more than five times Sacra's June estimate.

Investors appear to be pricing a different kind of business. Reuters reports that Kalshi aims to become a multi-asset trading platform. That would put it in competition with derivatives exchange CME Group and Intercontinental Exchange, the parent company of the New York Stock Exchange.

Competition is also intensifying. Polymarket is separately seeking $1 billion, and Sacra says Robinhood now routes some of its busiest World Cup contracts to its own exchange. Reuters notes that Kalshi has nonetheless taken market share from Polymarket over the past year, citing Dune Analytics data.

Regulation Could Set the Multiple

Scrutiny is also increasing. U.S. Senator Adam Schiff and other lawmakers have raised investor-protection concerns about prediction markets, according to Reuters.

The House Oversight Committee has been running an insider trading probe into prediction markets since May, and Kalshi was among its initial targets.

Kalshi has also faced allegations of wash trading, which it denies. It has held preliminary discussions about an initial public offering (IPO) in the coming years, which would expose its revenue multiple to public-market scrutiny.

Reuters reports the round is expected to close within weeks. Its final terms may show whether investors value Kalshi as a regulated exchange or as a fast-growing sportsbook.