Kalshi making early IPO talks with investment banks: report

Kalshi has begun early discussions with investment banks for a potential initial public offering, according to The Information.

Citing sources familiar with the matter, the news outlet reported on Thursday that Kalshi has held informal talks about an IPO. The company has also surpassed $2 billion in annualized revenue, per the report, up from the $1 billion annualized revenue run rate reported by the Wall Street Journal in March.

Kalshi declined to comment when contacted by The Block.

The IPO discussions come as Kalshi continues to expand rapidly. The prediction markets platform raised $1 billion in a Series F round in May, bringing its valuation to $22 billion. The round was led by Coatue, with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest.

Kalshi and its rival, Polymarket, remain the dominant players in the prediction market sector. Kalshi recorded $16.81 billion in monthly volume in May, up from $14.81 billion in April, according to The Block's data dashboard. Polymarket posted $7.08 billion in volume last month, down from $9.01 billion in April.