Nubank Alum Secures $10M Series A for Palomma to Scale AI-Driven Rental Finance

Cipriano Echavarría, an early member of Nubank’s Colombia launch team, has raised $10 million in Series A funding for his Medellín-based startup, Palomma. The round was led by Mexican venture firm Cometa and included participation from Volpe Capital, Clocktower Technology Ventures, and Y Combinator. This latest injection brings the company’s total funding to $14 million, which includes $4 million in previously undisclosed seed capital. The firm is positioning itself as a vertically integrated financial layer for the Latin American rental market, combining AI-driven property management software with specialized lending and insurance products.

Palomma’s strategy hinges on using property managers as a primary distribution channel rather than acquiring individual tenants or landlords. By providing property managers with AI software that automates leasing inquiries and collections, Palomma gains access to a proprietary data stream of rental payments and tenant behavior. This data allows the company to underwrite financial products that traditional banks often avoid, such as Palomma Advance, which permits landlords to collect up to 12 months of future rent upfront, and Palomma Protect, a guarantee service that covers income if a tenant defaults.

The startup reports significant traction, with annual recurring revenue growing thirtyfold over the last 18 months to approximately $3 million. Palomma currently processes roughly $130 million in monthly rental payments, serving over 200,000 tenants across 500 property management firms. According to Echavarría, the company’s net revenue retention stands at 390% after 12 months, suggesting that existing customers are rapidly adopting additional financial services after onboarding with the core AI software. This high retention is a key metric for the firm’s valuation logic as it seeks to dominate the Colombian market before expanding regionally.

The editorial focus here is on the operational efficiency enabled by AI, which Palomma uses to maintain a lean headcount of just 18 employees despite its transaction volume. Echavarría claims a single customer service employee manages support for 200,000 tenants by working alongside AI agents. Furthermore, the company uses AI to process rental applications and deliver approvals in under 30 seconds by analyzing WhatsApp conversations and payment histories. This automation is intended to lower the cost of financial services in the same way digital banking disrupted traditional brick-and-mortar lenders.

While Colombia remains the immediate priority, the new capital is earmarked for expansion into Mexico, Brazil, and the Spanish-speaking market in the United States. Cometa managing partner Pepe Bolaños noted that Palomma’s competitive advantage lies in its ability to build a proprietary data asset in a fragmented market. By controlling the payment rail, the company can flag potential defaults and improve underwriting accuracy. While Palomma currently carries the risk for its rental guarantees, it is reportedly finalizing a partnership with an insurer to share that liability and scale its guarantee offerings.