Kalshi plans to raise around $1 billion in funding, with a potential valuation of $40 billion.

According to Reuters, people familiar with the matter said prediction market platform Kalshi is in advanced negotiations for a new round of roughly $1 billion funding, with new and existing investors including Tiger Global Management and Dragoneer Investment Group set to participate. Sequoia Capital and Wellington Management are in talks to co-lead the round, which is expected to close in the coming weeks and could value Kalshi at around $40 billion. This funding comes just months after Kalshi completed its previous $1 billion round in May this year, when the company was valued at $22 billion. Kalshi and Tiger Global both declined to comment, while Sequoia, Wellington, and Dragoneer did not respond to requests for comment. Kalshi aims to expand from a prediction market platform covering sports and election events into a one-stop trading platform for more asset classes, and has begun competing with CME Group and Intercontinental Exchange, parent company of the New York Stock Exchange. The sources also added that Kalshi has recently held preliminary discussions about a potential IPO in the coming years. Its competitor Polymarket is also separately in talks for a $1 billion funding round.