Palomma raises $14 million to bring AI financial tools to Latin America’s rental market
Medellín-based fintech Palomma has raised $14 million to bring AI-driven financial tools to Latin America’s rental market. The Series A round, led by Mexican venture firm Cometa, pushes the startup’s total funding to $14 million—including previously undisclosed seed capital.
Editor, Lazyfounder
30 SEC SUMMARY
- Palomma, a Medellín-based fintech, has raised $14 million to expand its AI-powered financial services for renters and landlords in Latin America.
- The $10 million Series A was led by Mexican venture firm Cometa, with participation from Y Combinator and other investors.
- The startup processes $130 million in monthly rental payments and serves over 200,000 tenants in Colombia alone.
- Palomma’s annual recurring revenue surged thirtyfold in 18 months to $3 million, with net revenue retention at 390% after a year.
- The company plans to expand into Mexico, Brazil, and the Spanish-speaking U.S. market next.
TABLE OF CONTENTS
Palomma secures $14 million to expand AI-powered rental services
Palomma, a Medellín-based fintech startup, has closed a $14 million funding round to expand its AI-driven financial services for landlords, tenants, and property managers across Latin America. The round includes $10 million in Series A funding led by Mexican venture firm Cometa. Other investors—Volpe Capital, Clocktower Technology Ventures, Tekton Ventures, Simma Capital, and Yango Ventures—joined alongside existing backers Y Combinator, 17Sigma, Nido Ventures, and Norte Ventures.
The startup was founded by Cipriano Echavarría, a former Nubank employee, and two MIT-trained engineers, Felipe Monsalve and Nicolás Gómez del Campo. They entered Y Combinator in January 2023 and have since built a platform that processes $130 million in monthly rental payments.
Inside Palomma’s growth: $1.5B volume and 390% retention
Palomma now handles $130 million in monthly rental payments for over 200,000 tenants across Colombia. The transactions flow through more than 500 property managers, giving the startup an annualized rent payment volume of $1.5 billion.
Revenue growth has kept pace. Annual recurring revenue jumped thirtyfold in just 18 months to $3 million. Even more striking—customers who stay with Palomma for a year end up spending nearly four times more, pushing net revenue retention to 390%.
How Palomma evolved from payments to AI-powered financial tools
Palomma started as an account-to-account payments processor for Spanish-speaking Latin America. When property managers asked for help collecting rent, the team pivoted. Today, the platform combines AI software with financial products tailored for both sides of the rental market.
For tenants, Palomma Plus offers rewards and credit-building benefits. Landlords can use Palomma Advance to collect up to 12 months of rent upfront. Palomma Protect guarantees rental income if a tenant defaults. A new feature, Palomma Flex, will let tenants split their monthly rent into two payments.
Every approval runs through Palomma’s AI tools. One, a WhatsApp-based leasing agent, delivers tenant approvals in under 30 seconds.
Why bundling works for Latin America’s rental market
Cipriano Echavarría, Palomma’s CEO, says Latin America’s rental market is too fragmented for single-product startups to gain traction. Unlike in the U.S., where companies like Zillow or Lemonade can focus on one service, Palomma bundles software, payments, and financial tools to meet local demands.
The company’s next move is expansion. After solidifying its position in Colombia, Palomma plans to enter Mexico, Brazil, and the Spanish-speaking U.S. market. It is also finalizing a partnership with an insurer to share risk on rental guarantees.
What this means
Lazyfounder analysis — our interpretation, not reported fact.
Palomma’s 390% net revenue retention signals that landlords and tenants are not just signing up—they’re sticking around and buying more services over time, a rare outcome in Latin America’s historically churn-prone rental markets.
Key takeaways
- Palomma’s $3 million ARR and 390% net revenue retention show that vertical SaaS-plus-finance models can scale in Latin America’s fragmented rental markets.
- By bundling AI-driven software, payments, and financial services, Palomma reduces customer acquisition costs and increases stickiness for property managers.
- The startup’s lean team of 18 employees processes $130 million in monthly rent payments, highlighting operational efficiency.
Related on Lazyfounder
Sources
- Crunchbase News · 2026-11-11
Exclusive: Nubank Alum Raises $14M For Colombia’s Palomma To Tackle Rent Payments, Landlord Financing
This story is an original summary drafted with AI by Lazyfounder from the reporting listed above and checked by automated validation. Facts are attributed to their original publishers; sections marked as analysis are Lazyfounder's. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links, and see our AI policy and corrections policy.
About the author
Editor, Lazyfounder
Tarun Mottlia edits LazyFounders, covering Indian startups, funding rounds, AI and product launches. Every story on the site is AI-assisted and checked against its cited sources before publication.
More stories by Tarun MottliaGet the LazyFounder Brief
Startup, funding and AI news in a five-minute read. Join the early-access list.
