Kalshi is in discussions to raise new capital at a valuation of approximately $40 billion, nearly doubling the $22 billion it targeted in its previous funding round, according to a Financial Times report citing people familiar with the matter. A deal could close as soon as the third quarter of 2026.

The raise, if completed, would widen the prediction market platform’s lead over rival Polymarket, which has separately been in talks to raise at a $15 billion valuation.

This story is an excerpt from the Unchained Daily newsletter.

Kalshi’s $22 billion round attracted a roster of prominent investors, including Philippe Laffont’s Coatue Management, Sequoia Capital, Andreessen Horowitz, and Morgan Stanley.

Kalshi’s reported fundraising discussions come after CEO Tarek Mansour in a CNBC interview Wednesday said that the company is considering a public listing. “A company of our financial profile with the rate of growth that we’re seeing, that sort of conversation has to happen,” Mansour said, adding the company is thinking about it but does not have an answer yet. He specified an IPO would not occur before 2027.

Kalshi has expanded aggressively beyond its prediction market roots, launching the first CFTC-approved crypto perpetual futures and announcing a tokenized prediction market product on Solana. The company overtook Polymarket in year-to-date notional volume earlier this year, recording $37.5 billion to Polymarket’s $29.2 billion.

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