Kalshi raises 1 billion dollars at 40 billion dollar valuation, approaches IPO

Kalshi has raised 1 billion dollars in a Series G funding round, increasing its valuation to 40 billion dollars. The round was led by Sequoia Capital and Wellington Management, with participation from Baillie Gifford, Morgan Stanley Investment Management, Coatue Management, and Andreessen Horowitz. This funding significantly exceeds the valuation of competitor Polymarket and may be the last major round before a potential IPO. CEO Tarek Mansour confirmed discussions about an IPO but did not specify a timeline. Previous SEC filings indicated that from April to August 2026, Kalshi raised 1.12 billion dollars through private placements, including a 1 billion dollar Series F round disclosed in May. Kalshi's popularity surged after launching sports contracts in early 2025, with sports accounting for about 80% of trading volume. Mansour noted that revenues outside of sports have already surpassed 1 billion dollars, with cryptocurrencies growing faster than sports and commodities outpacing cryptocurrencies. However, Kalshi faces legal challenges as several U.S. state attorneys general argue that event outcome contracts, including sports, are essentially gambling and should be regulated accordingly. Kalshi maintains that its operations fall under federal CFTC regulation. Courts in various states have issued differing rulings, leading New Jersey to seek a U.S. Supreme Court decision on whether federal law supersedes state rules in regulating sports contracts on prediction markets. Mansour stated that the company complies with federal regulations and respects court decisions regardless of the outcome.