Kalshi is reportedly in talks with several investment banks to explore the possibility of an IPO, according to The Information.
The discussions are currently in their initial stages and are not yet formal. The report also stated that Kalshi's annual revenue has exceeded $2 billion, double the $1 billion figure reported by the Wall Street Journal in March.
The IPO plan was mentioned at a time when this prediction market platform was growing rapidly. In May, Kalshi successfully raised $1 billion in its Series F funding round, raising the company's valuation to $22 billion. The Capital round was led by Coatue, with participation from Sequoia Capital, a16z, IVP, Paradigm, Morgan Stanley, and ARK Invest.
Kalshi and Polymarket currently lead the prediction market. In May, Kalshi's volume reached $16.81 billion, up from $14.81 billion in April. Meanwhile, Polymarket recorded $7.08 billion, down from $9.01 billion the previous month.
Despite strong growth, the prediction market is also facing increasing political and legal pressure, especially as the US midterm elections approach.
Earlier this week, several organizations representing the US gaming industry sent a letter to the Senate, proposing the inclusion of regulations in the crypto market management bill to explicitly prohibit sports-related prediction contracts and casino-style betting.
Kentucky has also become the latest state to sue Kalshi, Polymarket, and related entities, alleging they operated an illegal sports betting and gambling platform without a license in the state. Several other states have taken similar action previously.
The rapid growth of prediction markets has also intensified the dispute over regulatory control between the federal and state governments. While many states want to restrict or ban these platforms, the U.S. Commodity Futures Trading Commission (CFTC) maintains that prediction markets fall under its own jurisdiction under the Commodity Trading Act. The CFTC has also sued several states for attempting to block the operation of prediction market platforms.
The article "Kalshi works with investment banks, gearing up for IPO plans" first appeared on CoinMoi .
