Kalshi Seeks $1 Billion Funding Round at $40 Billion Valuation

According to Digital Today, prediction market platform Kalshi is in the final stage of raising $1 billion in new funding. 

Digital Today notes that, in a Reuters report, it said that if the funding deal closes, Kalshi's valuation would be $40 billion. 

In the report, new investors Tiger Global and Dragoneer Investment Group would join the existing backers. One of those existing backers is Sequoia Capital, which is discussing a plan to lead the investment with Wellington Management. The funding is expected to wrap up in a "couple of weeks," and this follows Kalshi's $1 billion raise in May at a $22 billion valuation. 

Kalshi Looks to Expand Beyond Prediction Markets

With this round of funding, Kalshi is looking to become even larger and pull away from Polymarket. Digital Today says data from Dune Analytics shows Kalshi has been eating into Polymarket's market share over the past year. 

Polymarket had issues launching in the United States and was investigated by the Commodity Futures Trading Commission. That company is also looking to raise $1 billion. 

Kalshi is also aiming to expand beyond sports and election prediction market contracts. Digital Today says that Kalshi "appears to be competing with traditional exchanges such as CME Group and Intercontinental Exchange, the parent of the New York Stock Exchange."

It's also said that Kalshi is in early talks to go public with an IPO "within a few years." 

Kalshi Continues to Face Legal Challenges

While this is a lot of funding, the Ninth Circuit ruled against Kalshi last month in a legal battle involving California tribes. Right now, prediction market platforms remain a legal grey area, but we'll see whether New Jersey can get a hearing with the Supreme Court to weigh in on the issue.