Valon Technologies has raised $150 million in Series D funding at a $2.3 billion valuation to accelerate deployment of ValonOS and its AI agents across the U.S. mortgage servicing industry. The new valuation is double Valon’s previous valuation. Ribbit Capital joined the financing as a new investor, with existing investors including Andreessen Horowitz also participating.
Valon plans to use the funding to accelerate product development and expand its teams as it moves large mortgage servicers from legacy technology systems onto ValonOS and its AI agents.
The company is hiring across engineering, product, deployment and go-to-market functions in New York, San Francisco and remotely.
Founded in 2019, Valon initially built and operated its own mortgage servicing business on its technology platform before making ValonOS available to other companies.
Within six months of launching ValonOS to the broader industry, Valon signed more than $200 million in contracted annual recurring revenue.
One in six outstanding U.S. mortgages is now under contract to run on ValonOS.
Customers include Rithm Capital’s Newrez, Carrington Mortgage Services and ServiceMac.
Two of the 10 largest U.S. mortgage servicers are already live on ValonOS: ServiceMac, the fourth-largest residential subservicer, and Carrington Mortgage Services.
Carrington acquired Valon’s mortgage servicing business in August and adopted ValonOS as its core servicing platform.
ValonOS replaces multiple fragmented mortgage servicing systems with a single operating system covering loan data, investor reporting, operational workflows, compliance logic and money movement.
That infrastructure also provides the foundation for Valon’s AI agents.
The agents are designed to perform mortgage servicing tasks ranging from responding to homeowner emails to allocating payments and running escrow analyses.
Valon said its architecture gives AI agents structured servicing data, decision histories and the ability to execute deterministic actions while maintaining an audit trail.
Over time, Valon plans to expand beyond mortgages into other regulated lending markets that share similar requirements around high-volume transactions and regulatory compliance, including commercial, personal, auto and student lending.
KEY QUOTES:
“For sixty years, mortgage servicing has run on aging mainframe systems, and every regulatory change has compounded technical debt and increased costs. That is no longer the only option. ValonOS is the operating system the industry is moving onto, and this financing lets us bring it, and the AI agents that run on it, to every servicer in the country.”
Andrew Wang, Co-Founder and CEO of Valon
“Andrew, Linda, Brian, and the Valon team are taking on a part of financial services that is badly in need of better technology. A mortgage is the biggest bill most families will ever have, yet the companies that service those loans still rely on complex, hard-to-navigate legacy software. From the beginning, they’ve understood that improving the status quo takes more than better software: you have to service the loans yourself and prove the system holds up at real scale. We’re proud to back them as they build the trusted platform that mortgage servicing can run on for decades to come.”
Micky Malka, Founder of Ribbit Capital
“Replacing core servicing technology is a significant decision, and not one ServiceMac took lightly. After more than 30 years in this industry, I know meaningful change requires thoughtful modernization. Valon’s capabilities support our efforts to help our teams work more effectively, manage risk, meet compliance requirements and deliver the service and accuracy our clients expect. We’re excited about what this partnership will enable.”
Rod Hatfield, Chief Operating Officer and Executive Vice President of ServiceMac
“The bottleneck for deploying AI agents into regulated industries is context, not intelligence. Mortgage servicing is a heavily regulated, edge-case-driven business, and agents need three things to be effective and safe: structured servicing data and context, decision traces behind workflows, and the ability to execute deterministic actions. We spent six years running a servicer and developed an ontology grounded in how mortgage servicing actually works. Leaders in the industry are moving to purpose-built systems with full context and the right level of determinism, and the largest servicers in the country are doing it with ValonOS.”
Linda Du, Co-Founder and President of Valon
“Servicing is the hardest, but also the stickiest, way to enter one of the largest debt markets in America. You have to turn regulation into code, get multiple licenses, and earn the trust of the biggest asset managers in the country. Valon has built the operating system for a $13 trillion mortgage market and is poised to do the same in other asset classes. We’ve backed Valon from the start, and have come back in every round since.”
Angela Strange, General Partner at Andreessen Horowitz
