Kalshi is lining up one of the biggest fintech IPOs in years

Early IPO Talks After Revenue Surges

@Kalshi, the CFTC-regulated prediction market exchange, has begun informal discussions with investment banks about a potential initial public offering, according to a report from The Information. Top executives have engaged in early, informal talks with investment banks, driven by a sharp run-up in business that has pushed annualized revenue north of $2 billion, roughly three times what it was in November, after a wave of NBA and World Cup betting boosted trading volume.

The IPO conversations remain at an early stage, and no listing is expected before late 2027 or 2028. Kalshi has not commented publicly on the discussions. As part of the conversations, Kalshi is asking prospective bank advisers to integrate with its platform, a move designed to give institutional clients of those banks direct trading access.

A $22 Billion Company With Wall Street Ambitions

The most recent major fundraising round was a $1 billion Series F in May 2026, led by Coatue at a $22 billion valuation. The round drew participation from Sequoia Capital, Andreessen Horowitz, Paradigm, IVP, Morgan Stanley, and ARK Invest. According to DeFiLlama data, Kalshi has raised $2.685 billion across five rounds since June 2025.

Kalshi commands more than 90% of U.S. prediction market activity, with annualized trading volume climbing from $52 billion to $178 billion over the past year, and institutional trading on the platform jumping 800% in the six months ended in early May.

A public listing would place the CFTC-regulated exchange firmly on a traditional Wall Street path. Should Kalshi go public in 2027 or 2028 at a valuation near its last private round, it would rank among the largest U.S. fintech IPOs in recent years. Its decentralized rival Polymarket operates under a different model. Kalshi runs a CFTC-regulated exchange, while Polymarket's largest prediction market exchange is domiciled offshore and claims to block U.S. users, meaning it is not effectively subject to CFTC rules.

Regulatory risk remains a real consideration. Lawsuits from more than a dozen U.S. states allege Kalshi operates unlicensed sports betting, and some estimates place sports contracts at up to 90% of Kalshi's revenue, meaning an adverse court ruling could eliminate its primary income source.

Sources:
Cryptopolitan: Kalshi considers IPO as $2B annualized revenue, $22B valuation fuels optimism
Bitcoin Magazine: Prediction Market Kalshi Eyes IPO As Revenue Hits $2 Billion
Britannica Money: Kalshi Inc.