Palomma discloses seed backing from Y Combinator, Nido Ventures and Latitud
The Colombian startup used seed equity to build a simpler way for merchants to accept payments directly from bank accounts.
Palomma raised seed equity from Y Combinator, Nido Ventures and Latitud to develop its bank payments business, co-founder Cipriano Echavarría said in an April 3, 2023 interview. The company did not disclose the amount.
The Colombian startup built a payment button that lets online shoppers pay directly from their bank accounts. Its proposition to merchants was lower processing costs and fewer steps at checkout, helping more customers complete a purchase.
Building direct bank connections
Echavarría founded Palomma with Felipe Monsalve and Nicolás Gómez del Campo. After securing the investment, the team developed connections to Bancolombia and Nequi and made the service available through an integration for WooCommerce stores.
At the time of the interview, Echavarría said Palomma had signed 20 customers within three weeks of its public launch. The company was focusing on growing its merchant base and making bank payments easier to adopt.
Use of funds
Develop bank payment infrastructure