Palomma has raised a $10 million Series A led by Mexican venture firm Cometa as the Colombian startup works to bring an insurer into its rental-guarantee business, Crunchbase News reported November 11.
Co-founder and chief executive Cipriano Echavarría told the publication that Palomma initially bears the default risk on its guarantees. The proposed insurer partnership would share that exposure and let the startup offer more guarantees. Palomma’s Protect product page advertises rent coverage for up to 36 months.
Software subscriptions provide one source of revenue; fees tied to rent from payments and financial services provide another. Property managers use Palomma’s AI tools for leasing inquiries, tenant support and collections. The payments business also gives Palomma evidence for financing decisions, showing how tenants pay and how much rental income landlords receive.
The company told Crunchbase it processes about $130 million in monthly rent for more than 200,000 tenants through over 500 property managers in Colombia. It put annual recurring revenue at about $3 million, following thirtyfold growth over 18 months.
Palomma’s original Y Combinator launch page pitched bank-payment processing to online merchants and apps. Echavarría told Crunchbase that growth was largely flat in its first year, before property managers’ requests for rent-collection help steered the startup toward rentals.
The Series A brings total funding to $14 million, including $4 million raised earlier but not previously disclosed, according to the report. Palomma plans to expand in Colombia, develop additional AI and financial products and prepare for other markets. Echavarría said Colombia remains the priority, with Mexico, Brazil and the Spanish-speaking US market under consideration.