Kalshi in talks with Sequoia, Wellington for $750 million fund raise at $40 billion valuation

Prediction market giant Kalshi is in advanced discussions with Sequoia Capital and Wellington Management for a new $750 million funding round at a $40 billion valuation, The Information reported, citing people familiar with the matter.

Sequoia, which is already an existing investor in Kalshi, and Wellington are considering leading the investment round, the sources said, adding that the funding amount could be greater than $750 million. The Silicon Valley-based Sequoia, which has $56 billion in assets under management, already has an executive on Kalshi’s board of directors.

For Wellington, a Boston-based financial giant with $1.3 trillion in client assets under management (AUM), this funding round would be its first investment in Kalshi. Wellington has made private investments in companies leading up to their initial public offerings (IPO). Kalshi is considering an IPO in 2027, its CEO Tarek Mansour said in June.

Kalshi, which raised $1 billion in May at a $22 billion valuation, is now the number one prediction market platform by revenue, followed by Polymarket, which was last reported to be seeking funding at $20 billion, following a $600 million investment from the Intercontinental Exchange, the owner of the New York Stock Exchange, at a $15 billion valuation in August.

Kalshi’s annualized revenue increased to $4 billion in July, bolstered mostly by 2026 World Cup betting. Polymarket’s revenue was only $1.1 billion for that same period. Sequoia Capital recently said Kalshi “now claims 95% U.S. market share in prediction markets.”

Most of Kalshi’s revenue comes from sports contracts, which contribute to over 80% of its volume. Kalshi announced Wednesday that Jeff Bandman, the lawyer who helped Kalshi secure a license to be a CFTC-regulated exchange in 2020, is returning to Kalshi as CEO of Kalshi Prime, which serves customers of Kalshi’s margin perpetual futures business.

Neither Sequoia, Wellington nor Kalshi immediately responded to a CoinDesk request for confirmation.