Prediction Market Kalshi Eyes IPO As Revenue Hits $2 Billion

Kalshi, the leading prediction markets platform in the U.S., is currently in discussions with investment banks regarding a potential initial public offering (IPO), as reported by The Information. The company has experienced significant growth, with its annualized revenue surpassing $2 billion, triple the figure reported in November 2025. This surge in revenue can be attributed to increased trading activity during major events such as the NBA playoffs and the FIFA World Cup.

In May, Kalshi recorded a monthly trading volume of $16.81 billion, up from $14.81 billion in April, showcasing the platform’s growing popularity among traders. While talks of an IPO are still in the early stages, it is unlikely to occur before late 2027 or 2028. As part of the discussions with potential bank advisers, Kalshi is seeking to integrate its platform with institutional clients to provide direct trading access.

This news comes shortly after Kalshi closed a $1 billion Series F funding round led by Coatue, valuing the company at $22 billion, double its valuation from January. Investors in this round included prominent firms like Sequoia Capital, Andreessen Horowitz, and Morgan Stanley, among others.

Kalshi has established itself as the dominant player in the U.S. prediction market space, commanding over 90% of market activity. Its annualized trading volume has seen a significant increase, climbing from $52 billion to $178 billion in the past year. Institutional trading on the platform has also surged by 800% in the six months leading up to early May.

Founded in 2020 by Tarek Mansour and Luana Lage, Kalshi was created to provide a regulated exchange for users to trade on the outcomes of real-world events, ranging from economic indicators to sports results and political races. Following a legal battle against the CFTC, Kalshi gained the right to list political event contracts in late 2024, opening up a market that now generates billions in annual trading volume.

With its latest funding, Kalshi plans to expand its institutional offerings, including block trading capabilities and new risk products for hedge funds, asset managers, and insurers. The timing of its IPO will depend on market conditions and the sustainability of its growth. Despite competition from other prediction market platforms like Polymarket, Kalshi’s status as a CFTC-regulated exchange gives it a unique advantage in institutional adoption.

If Kalshi were to go public in 2027 or 2028 at a valuation similar to its last funding round, it would be one of the largest U.S. fintech IPOs in recent years. The company’s impressive growth and market dominance position it well for a successful public offering in the future.