Kalshi is in advanced talks with Sequoia Capital and Wellington Management to raise at least $750 million at a $40 billion valuation, according to CoinDesk, citing The Information and people familiar with the matter.
People familiar with the discussions said Sequoia and Wellington are considering leading the round, and the total raise could exceed $750 million. A deal would increase Sequoia’s existing position in Kalshi and mark Wellington’s first investment in the company. Kalshi is also considering an initial public offering in 2027.
Valuation jumps from $22 billion in May to $40 billion
Kalshi raised $1 billion in May at a $22 billion valuation. The new financing talks put the company at nearly double that level within months.
By revenue, Kalshi has become the top prediction-market platform in the U.S., with Polymarket following behind, the report said. Polymarket was last reported seeking funding at a $20 billion valuation. Earlier, Intercontinental Exchange, the parent company of the New York Stock Exchange, invested $600 million in Polymarket in August at a $15 billion valuation.
Annualized revenue reaches about $4 billion
Kalshi’s annualized revenue is about $4 billion. The report said that figure climbed to $4 billion in July, mainly because of betting tied to the 2026 World Cup. Over the same period, Polymarket’s revenue was $1.1 billion.
Kalshi says it now controls 95% of the U.S. prediction market by revenue. Sequoia recently made the same claim, saying Kalshi now holds a 95% share of the U.S. prediction market.
Most of Kalshi’s revenue comes from sports contracts, which account for more than 80% of trading volume.
Sequoia is already an investor; Wellington would be new
Sequoia, based in Silicon Valley, manages $56 billion in assets and is already a Kalshi investor. One of its executives also serves on Kalshi’s board, according to the report.
Wellington Management, based in Boston, manages $1.3 trillion in client assets. For Wellington, the transaction would be its first investment in Kalshi. The report added that Wellington has previously made private investments before companies go public.
Kalshi Prime names a new CEO
Kalshi said Wednesday that lawyer Jeff Bandman, who helped the company secure a regulated exchange license from the Commodity Futures Trading Commission in 2020, will return as chief executive of Kalshi Prime. Kalshi Prime serves clients tied to Kalshi’s margin perpetual futures business.
CEO Tarek Mansour said in June that the company is considering a 2027 IPO.
Sequoia, Wellington and Kalshi did not immediately respond to CoinDesk’s requests for comment.