Nubank Alum Raises $14M to Transform Rental Payments in Colombia

A Colombian startup called Palomma has raised $10 million in Series A funding. The round was led by Mexican venture firm Cometa. This brings the company’s total funding to $14 million. Additional participants include Volpe Capital, Y Combinator, and several other investors.

Tackling Rental Payments

Cipriano Echavarría co-founded Palomma alongside Felipe Monsalve and Nicolás Gómez del Campo. The startup provides software for property managers to handle leasing inquiries, customer collections, and payouts. Palomma uses property managers as a distribution channel to reach tenants and landlords.

The platform processes about $130 million in monthly rental payments. It serves more than 200,000 tenants in Colombia through over 500 property managers. Palomma offers several financial products. Palomma Advance lets landlords collect up to a year of future rent upfront. Palomma Protect covers rental income if a tenant stops paying.

Plans for Expansion

Palomma plans to use the new funds to expand within Colombia and develop additional artificial intelligence and financial products. The company is also considering entering other markets like Mexico, Brazil, and the Spanish-speaking U.S. market. Artificial intelligence helps the startup keep its team small while handling thousands of tenant inquiries and assessing risk for rental guarantees.