Kalshi opens informal IPO talks as revenue tops $2 billion

The prediction market platform Kalshi has initiated preliminary discussions with investment banks about a potential initial public offering, according to reports citing people familiar with the matter. The talks are described as informal and non-binding, with any potential listing likely occurring in late 2027 or 2028. This exploration of a public market debut follows a period of explosive growth for the company, which has now surpassed a $2 billion annualized revenue run rate, a significant increase from the $1 billion rate reported in March.

The company's financial momentum was underscored last month when it closed a $1 billion Series F funding round led by Coatue, which valued Kalshi at $22 billion. Other investors in the round included Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest. Trading volume has climbed alongside this financial growth. In May, Kalshi recorded $16.81 billion in monthly trading volume, up from $14.81 billion in April. This performance has widened its lead over its main competitor, Polymarket, which posted $7.08 billion in volume in May, down from $9.01 billion the previous month.

As part of the early IPO discussions,...