Kalshi, the leading U.S. prediction‑market platform, is reportedly in early discussions with investment banks about a potential initial public offering, according to sources familiar with the company’s finances.
The disclosure comes after a period of rapid growth for the four‑year‑old firm. Kalshi’s annualized revenue has topped $2 billion—roughly three times its level in November 2025—driven by record trading volumes during the NBA playoffs and the FIFA World Cup.
In May, monthly trading volume reached $16.81 billion, up from $14.81 billion in April.
The IPO talks remain preliminary, with any listing unlikely before late 2027 or 2028. Kalshi is asking prospective advisers to integrate their systems with its platform, giving the banks’ institutional clients direct trading access.
The news follows Kalshi’s recent $1 billion Series F round led by Coatue, which valued the company at $22 billion—double its valuation in January—and attracted participation from Sequoia Capital, Andreessen Horowitz, Paradigm, IVP, Morgan Stanley, and ARK Invest.
Kalshi’s scale
Kalshi now captures more than 90 % of U.S. prediction‑market activity. Over the past year, its annualized trading volume rose from $52 billion to $178 billion, while institutional trading on the platform surged 800 % in the six months ending early May.
These metrics have drawn interest from Wall Street firms seeking new avenues for capital deployment.
Founded in 2020 by MIT and Y Combinator alumni Tarek Mansour and Luana Lage, Kalshi was built as a regulated exchange for trading outcomes of real‑world events—from Federal Reserve decisions and economic indicators to sports results and political races.
After a prolonged legal battle with the CFTC, Kalshi won the right in late 2024 to list political‑event contracts, unlocking a market that now generates billions in annual trading volume.
The company plans to use its latest capital to expand institutional services, including block‑trading capabilities, new risk products for hedge funds, asset managers and insurers, and upgrades to its core trading infrastructure.
The timing of an IPO will depend on overall market conditions and the sustainability of Kalshi’s growth. While competitors such as Polymarket have entered the space, Kalshi’s status as a CFTC‑regulated exchange provides a distinct advantage for institutional adoption.
If Kalshi lists in 2027 or 2028 at a valuation comparable to its most recent private round, it would rank among the largest U.S. fintech IPOs in recent years.
