Kalshi Holds Early IPO Talks With Banks as Revenue Triples to $2 Billion

Kalshi has begun early, informal discussions with investment banks about a potential initial public offering, according to a report from The Information citing people close to the company's financials. The talks come as the prediction markets platform's annualised revenue has roughly tripled since November to surpass $2 billion, up from the $1 billion run rate reported by the Wall Street Journal in March.

As part of the early discussions, Kalshi is reportedly asking prospective advisers to integrate with its platform, giving the banks' institutional clients direct access to trade on it. Any formal listing is still considered at least a year away, with late 2027 or 2028 seen as the more realistic window. Kalshi has not filed an S-1, has not selected a lead underwriter, and has not set a timeline. The company declined to comment when contacted.

Kalshi IPO Talks Follow a Revenue Surge Driven by NBA and World Cup Volume

The revenue jump traces back to a sharp increase in trading activity around major sporting events, with NBA and World Cup contracts driving the bulk of the growth. That kind of event-driven volume has become central to Kalshi's business model, with the platform now competing directly with traditional sportsbooks for the same betting dollars, despite being regulated as a derivatives exchange rather than a gambling operator.

The momentum follows a $1 billion Series F round Kalshi closed in May, led by Coatue with participation from Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest. That round valued the company at $22 billion, roughly double its valuation from the prior round just months earlier. ARK's involvement is notable given the firm's parallel appetite for high-growth, high-volatility assets, the same logic that has driven its crypto ETF positioning elsewhere in its portfolio.

Kentucky Becomes the Latest State to Sue Kalshi Over Sports Betting Claims

The IPO talks land amid intensifying regulatory pressure on the prediction markets sector. Kentucky filed a lawsuit against Kalshi, Polymarket and related entities this week, alleging the platforms operate unlicensed sports betting and gambling products in the state, joining a growing list of states that have taken similar action. Regulatory uncertainty of this kind has become a recurring theme across crypto-adjacent markets, not just prediction platforms, as state and federal regulators continue to clash over jurisdiction.

That collision between federal and state authority is likely to shape Kalshi's path to public markets as much as its revenue growth does. A company preparing to go public typically wants regulatory clarity, not an open legal fight playing out simultaneously in multiple state courts. The same tension between federal oversight and state-level pushback has shaped how other onchain financial products have reached market, and how it resolves over the next year may matter more to any eventual Kalshi listing than the headline revenue figures driving today's talks.

Is Kalshi Legit? A Full Review of the Prediction Market

Kalshi is the only fully CFTC-regulated prediction market in the US, with a $22 billion valuation and record monthly volumes. This review covers exactly what it offers, how its fees work, the legal grey areas, and whether it is worth using.

Nakamoto DailySoonhan Rani