Paloma Works PBC

Paloma Works PBC is a US-based company that provides an innovative e-commerce platform designed specifically for sellers on Instagram, enabling various sales methods and enhancing the online selling experience. Paloma Works PBC, founded in 2017, operates from its headquarters in Brooklyn, US, focusing on empowering independent sellers through its specialized e-commerce solutions. The company has completed a total of 3 deals, with the most recent deal occurring on June 2, 2021. In this round, Paloma raised USD 4.

000 mn in Seed funding, led by Laconia Capital Group and involving multiple other investors. The founders of the company include Alejandro De Gac, Alyssa McKee, Hima Vadlamani, Kelsey Hunter, and Shane Chin, with Alejandro De Gac and Kelsey Hunter serving as the current CEOs. Paloma offers a comprehensive e-commerce platform tailored for sellers on Instagram, facilitating various sales methods, including claim sales, auction bidding, and live sales. The core functionality allows users to connect their Instagram pages, manage inventory, and automate order processing with secure payment options.

By leveraging Meta's Messaging APIs, Paloma enables real-time tracking of customer interactions, allowing sellers to confirm claims, provide checkout links, and update order statuses seamlessly. The platform caters primarily to independent sellers who offer unique items, enhancing their sales processes without requiring a separate website or traditional e-commerce infrastructure. Paloma serves markets primarily in North America and Europe, capitalizing on the growing trend of social commerce where consumers engage directly with sellers through social media platforms. Paloma generates revenue through a tiered subscription model that includes various pricing plans based on the features and services used by its customers.

The BASIC plan is offered at no monthly cost, with a 0% Paloma fee, while the STARTER plan is priced at a 4% fee with processing rates starting at 2. 9% plus USD 0. 30 per transaction for credit card payments. The PROFESSIONAL plan, which allows for greater branding flexibility, is available at USD 29 per month if billed annually or USD 39 if billed monthly, carrying a 2% Paloma fee.

Additionally, the company offers a CUSTOM plan for sellers with annual sales exceeding USD 300,000, allowing for tailored service agreements. Transactions are structured as direct consumer sales, where customers purchase items through the Instagram platform, leveraging a secure integrated checkout process that accommodates various payment methods. In June 2021, Paloma Works PBC raised USD 4. 000 mn in Seed funding led by Laconia Capital Group, with participation from other investors such as Act One Ventures, Alpine Meridian Ventures, Black Jays Investments, CoFound, and Overton Venture Capital.

The company plans to utilize this funding to expand its operations and enhance product development. Future products are currently being designed to improve seller functionalities on Instagram, although specific release dates have not been disclosed. Additionally, Paloma is looking to expand its reach into new markets, particularly targeting increased penetration in Europe and additional areas within North America by the end of 2022.