Palomma Raises $10M Series A to Modernize Colombia's Rental Market

Property managers as the way in

Palomma says its annual recurring revenue has grown thirtyfold in 18 months to about $3 million. It processes about $130 million in monthly rent payments for more than 200,000 tenants through over 500 property managers in Colombia.

The founders entered Y Combinator in January 2023 planning an account-to-account payments processor, but growth was largely flat until property managers asked for help collecting rent. Palomma now gives them AI software for leasing conversations, customer service and collections, then processes their rent payments. That payment history lets it assess applicants for financial products.

Those products include Palomma Plus, with rewards and credit-building for tenants, Palomma Advance, which lets landlords collect up to 12 months of future rent upfront, and Palomma Protect, which covers rental income if a tenant defaults. Palomma Flex, which would split monthly rent into two installments, is in development. The company reports net revenue retention of 390% after 12 months.

AI and a small team

Palomma's leasing agent works through WhatsApp, and the company says it can approve rental guarantees in under 30 seconds. It currently bears the default risk itself but is finalizing a partnership with an insurer to share it. The team has 18 employees, and one customer service worker supports the platform alongside AI agents.

The funding will go toward expansion in Colombia, new AI and financial products, and preparation for other markets. Mexico, Brazil and the Spanish-speaking U.S. are under consideration, though Echavarría said Colombia is the priority. "We want to win Colombia," he said. Cometa's Pepe Bolaños noted that nearly 8 million Colombian households rent their homes.