Kalshi Nears $40B Valuation Round Ahead of Planned IPO

Kalshi Inc. is finalizing a financing round valuing the prediction market platform at roughly $40 billion, expected to be its last raise before an initial public offering as soon as 2027, according to people familiar. Sequoia Capital and Wellington Management are in talks to lead the deal. The valuation nearly quadruples Kalshi's $11 billion mark from December 2025 and doubles its $22 billion round in March 2026. The New York-based company reported about 90% gross margins and an annualized revenue run rate of approximately $4 billion as of August. August trading volume topped $40 billion, four times the level six months earlier, driven largely by sports wagers. Rival Polymarket is finalizing a round at a $21 billion valuation led by 1798 Capital. Both platforms operate as CFTC-regulated financial exchanges.