Palomma, based in Medellín, Colombia, has closed a $10 million Series A round led by Mexican firm Cometa, Crunchbase News reported in an exclusive. Total funding now stands at $14 million, which includes $4 million that was not disclosed before. Other investors named include Volpe Capital, Clocktower Technology Ventures, Tekton Ventures, Simma Capital and Yango Ventures, plus existing backers Y Combinator, 17Sigma, Nido Ventures and Norte Ventures.
What Palomma sells
The company reaches tenants and landlords through the property managers who run their rentals. Managers get AI software that handles leasing conversations, and Palomma then offers to process their rent payments. Those payments give it a record of income and payment behaviour, which it uses to assess applicants for financial products.
The products named in the report:
- Palomma Plus: rewards and credit-building benefits for tenants.
- Palomma Advance: lets landlords collect up to 12 months of future rent upfront.
- Palomma Protect: covers rental income if a tenant defaults.
- Palomma Flex: in development, would let tenants split monthly rent into two installments.
Managers pay a subscription for the AI software, and Palomma takes a percentage of rent through payments and financial services.
The numbers, as reported
The firm reports that its yearly recurring revenue rose thirtyfold over an 18-month span, reaching roughly $3 million. Each month it handles close to $130 million in rent payments on behalf of over 200,000 renters, working with more than 500 property managers across Colombia. It reports net revenue retention of 390% after 12 months. All of these figures come from the company.
Where AI does the work
Palomma's leasing agent talks to applicants over WhatsApp and collects their documents. The company claims it can then return an approval for a rental guarantee in under 30 seconds, using information from those conversations and from payment behaviour. A single customer service employee works alongside AI agents for the roughly 200,000 tenants. As of Nov. 4 the company had 18 employees, up from about 14 when the round closed about three weeks earlier.
The guarantees carry real risk. Palomma bears it itself for now, and its CEO says it is finalizing a partnership with an insurer to share that risk and offer more guarantees.
What comes next
The money will go toward expansion in Colombia, more AI and financial products, and preparation for other markets. Mexico, Brazil and the Spanish-speaking U.S. are under consideration, though the CEO said Colombia remains the priority. Longer term, the company plans to move into homeowners association payments and residential property transactions.