Prediction market giant in talks with investment banks for late 2027 or 2028 listing
Kalshi, the CFTC-regulated prediction market exchange, is in informal talks with investment banks about a potential initial public offering targeted for late 2027 or 2028, according to The Information. The company is exploring the move after annualized revenue surpassed $2 billion, a dramatic acceleration from $667 million in November 2025.
Founded in 2020 by Tarek Mansour and Luana Lage, Kalshi operates as a federally regulated exchange for trading on real-world event outcomes including Federal Reserve decisions, economic indicators, sports results, and political races. The platform commands roughly 90% of U.S. prediction market activity, according to company figures.
Monthly trading volume reached $16.81 billion in May 2026, up from $14.81 billion in April. Over the past year, Kalshi facilitated $178 billion in annualized trading volume, compared to $52 billion one year prior. Institutional trading grew 800% over the six-month period ended in early May 2026.
The company closed its Series F funding round in May 2026 at $1 billion, raising its valuation to $22 billion. Coatue led the round, with participation from Sequoia Capital, Andreessen Horowitz, Paradigm, IVP, Morgan Stanley, and ARK Invest.
Kalshi’s IPO timeline depends on broader market conditions and the durability of its growth trajectory. The company plans to deploy capital toward institutional expansion, block trading capabilities, new risk products for hedge funds, asset managers, and insurers, and infrastructure upgrades.
A legal victory in late 2024 cleared the path for expansion. A federal court ruled in Kalshi’s favor on political event contracts, enabling the platform to list wagers on political races. That ruling removed a regulatory barrier that had previously constrained the company’s product offerings.
Kalshi’s CFTC-regulated status distinguishes it from decentralized competitors like Polymarket, giving it structural advantages in attracting institutional capital. The company’s regulatory standing also provides a clearer path to public markets, where institutional investors increasingly require compliant infrastructure.
The Information did not name the investment banks involved in IPO discussions. Kalshi did not immediately respond to requests for comment.
