Aug 4 (Reuters) - Polymarket is seeking to raise funds at a valuation of more than $20 billion, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The prediction markets platform is holding early discussions to raise about $1 billion in the funding round, the report added.

Reuters could not independently verify the report. Polymarket did not immediately respond to a Reuters request for comment.

Prediction markets, which let users wager on yes-or-no outcomes across a wide range of events, have exploded in popularity and are garnering strong investor interest.

Peer Kalshi said earlier this year that it had raised $1 billion at a $22 billion valuation. Polymarket's latest discussions come after it raised $1 billion at a $15 billion valuation in April, the report said.

New York Stock Exchange parent Intercontinental Exchange ( ICE ) invested $600 million in Polymarket earlier this year, which the report said was a part of the April funding round.

Polymarket's annualized revenue had surpassed $1 billion, Reuters reported in June, citing a source familiar with the matter.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Anil D'Silva and Vijay Kishore)