Colombian rent payment startup Palomma raises $10 million

Palomma, a startup based in Medellín, Colombia, has raised $10 million in Series A funding. The money will help it grow a business built around rent: collecting it, lending against it and insuring it. Mexican venture firm Cometa led the round, which Crunchbase News reported first.

What Palomma does

Palomma sells software to property managers, the companies that run rentals for owners. The software uses AI to handle leasing conversations, customer service and collections. It also processes rent payments and pays landlords. Property managers pay a subscription fee, and Palomma also earns a percentage of rent through its payments and financial services.

Why rent was the opening

The founders first planned a general payments business and saw flat growth in the first year. Then property managers asked for help collecting rent. The company found problems on both sides. Tenants owed rent early in the month but were paid in two installments. Landlords struggled to borrow against rent or protect themselves when a tenant stopped paying.

The money products

Rent payments give Palomma a record of income and tenant payment habits. It uses that record to decide who qualifies for its other products.

• Palomma Plus gives tenants rewards and credit-building benefits.
• Palomma Advance lets landlords collect up to 12 months of future rent upfront.
• Palomma Protect covers rental income if a tenant defaults.
• Palomma Flex, still in development, would let tenants split monthly rent into two installments.

The numbers

Palomma says it processes about $130 million in rent each month for more than 200,000 tenants, through over 500 property managers in Colombia. It says annual recurring revenue grew thirtyfold in 18 months to about $3 million. The round brings total funding to $14 million, including $4 million not announced before. All figures come from the company.

What is still open

Palomma takes on the risk itself when a guaranteed tenant does not pay. It is working to finalize a deal with an insurer to share that risk. The company also claims its AI can approve a guarantee applicant in under 30 seconds, using WhatsApp conversations and payment history.

Colombia remains the priority. Palomma is considering Mexico, Brazil and the Spanish-speaking U.S. market, but no launch dates were given. No release date was given for Palomma Flex either.