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Kalshi is in talks to raise fresh funding at a valuation of about $40 billion, less than two months after completing a $1 billion round that valued the company at $22 billion.
The new financing could close as early as the third quarter, according to a Financial Times report citing people familiar with the discussions.
A $40 billion valuation would represent an increase of nearly 82% from the company’s previous round and eight times the $5 billion valuation it carried earlier in 2025.
Kalshi was valued at $11 billion in December before doubling that figure through its latest financing in May.
The previous round included Coatue, Sequoia Capital, Andreessen Horowitz and Morgan Stanley.
The rapid valuation increase reflects the expansion of prediction markets across sports, politics, financial markets and entertainment.
Kalshi recorded more than $17 billion in trading volume last month, compared with less than $5 billion during the same period a year earlier.
The company said its annualized trading volume reached $178 billion during its previous funding announcement, more than triple the level recorded six months earlier.
Sports related contracts currently generate about 65% of Kalshi’s total volume. Multi outcome combination contracts introduced last year have become one of the platform’s largest growth drivers.
Kalshi is also moving deeper into traditional derivatives markets.
The company recently launched perpetual cryptocurrency futures after receiving approval from the Commodity Futures Trading Commission.
CME Group sued the regulator over that decision, arguing that the contracts should be treated as swaps and subjected to a different approval process.
The lawsuit illustrates how Kalshi’s growth is beginning to challenge established derivatives exchanges as well as traditional gambling companies.
Kalshi also faces legal disputes with several US states over whether its sports and election contracts should be regulated as financial derivatives or gambling products.
Arizona filed criminal charges against the company in March, accusing it of operating without a gambling license and offering prohibited election contracts.
A Massachusetts judge separately ordered Kalshi to stop offering sports related contracts in the state without a local gaming license.
Kalshi is contesting the cases and maintains that its event contracts fall under the exclusive authority of the federal derivatives regulator.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.
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