Kalshi Nears $40 Billion Valuation in Last Round Before IPO

Sequoia and Wellington are in talks to lead a round that would nearly quadruple Kalshi's December price, while New York seeks at least $36 billion from the company in court.

Francis Gable

01/10/26 · 2 minOctober 1, 2026 · 2 min read

Kalshi is finalizing a funding round that would value the prediction market at around $40 billion, Bloomberg reported on Sept. 30, citing people familiar with the matter.

The deal is expected to be Kalshi's last private round before an initial public offering, which could come as soon as 2027, according to the report.

That price would nearly quadruple the $11 billion investors put on Kalshi in December. It also lands while New York asks a court for at least $36 billion in damages from the company, according to multiple reports of the state's filing.

Sequoia and Wellington Move to Lead

Sequoia Capital and Wellington Management are in talks to lead the round, Bloomberg reported. Kalshi and Sequoia declined to comment, and Wellington did not respond.

Kalshi's last raise was a $1 billion round at a $22 billion valuation, announced by the company in May. Coatue led it, and Sequoia took part.

Investors are drawn by how much of each sale Kalshi keeps. Its gross margins run about 90%, according to documents Bloomberg viewed. That means roughly 90 cents of every revenue dollar is left after the direct cost of running trades.

Kalshi's yearly revenue pace was about $4 billion as of August, Bloomberg reported. Trading volume passed $40 billion that month, four times its level six months earlier, according to Dune Analytics data.

Its monthly trading volume hit $60 billion in September 2026.

States Keep Suing

New York sued Kalshi on July 31, alleging it runs an unlicensed gambling business. The state wants Kalshi to forfeit its gains, repay customers and pay fines of three times those gains.

In July, a judge blocked Kalshi in Washington after rejecting its argument that federal oversight overrides state gambling law. Kalshi operates nationwide as an exchange registered with the Commodity Futures Trading Commission, a status states keep challenging.

Rival Polymarket is finalizing its own round at a $21 billion valuation, Bloomberg has reported. Kalshi has not confirmed the new round or its size, so the next marker is a formal announcement or a federal funding notice like the Form D filing behind its May raise.

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