Kalshi is seeking to raise about $40 billion worth of new capital, nearly 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 market platform could close fundraising as soon as the third quarter of this year, the FT said.
If the deal goes through, it would extend Kalshi’s valuation lead over rival Polymarket, which was last reported to be seeking $15 billion in funding. The two platforms have emerged as the dominant names in the prediction markets sector, while many other players have increased the industry’s competitive landscape.
Kalshi’s previous funding round, which valued the company at $22 billion, attracted a list 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 race to capture users and expand product offerings.
Kalshi operates as a federally regulated stock 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 crypto traders and has been widely followed during recent election cycles.
