Key facts
- Valon Technologies raised $150 million in a Series D round.
- The company's valuation reached $2.3 billion.
- New investor Ribbit Capital joined the round, alongside existing backers like Andreessen Horowitz.
- The funds will support product development and hiring.
- Valon positions itself as an AI-native operating system for regulated finance, focusing on mortgage servicing.
- ValonOS has over $200 million in contracted annual recurring revenue.
Valon Technologies announced on Monday that it has secured $150 million in a Series D funding round, valuing the company at $2.3 billion. This valuation doubles its previous valuation and includes new investment from Ribbit Capital, as well as continued support from Andreessen Horowitz and other prior investors. The newly acquired capital will be allocated towards enhancing product development and expanding its workforce across engineering, product, deployment, and go-to-market functions in its New York and San Francisco offices, as well as remote positions.
Valon operates as an AI-native operating system for regulated financial services, with an initial focus on mortgage servicing. The company reports that ValonOS currently has over $200 million in contracted annual recurring revenue and is under contract to manage servicing for approximately one in six U.S. mortgages.
The company's recent funding follows the acquisition of its mortgage servicing arm, Valon Mortgage, by Carrington Mortgage Services two months prior. This acquisition, initially announced in May, added about 810,000 loans to Carrington's portfolio, bringing its total to nearly 2 million loans. The divestiture allowed Valon Technologies to concentrate on scaling its software platform.
Carrington Mortgage Services has adopted ValonOS as its primary servicing platform, joining ServiceMac, the fourth-largest residential subservicer, as a major client. Rithm Capital subsidiary Newrez is also utilizing the ValonOS platform.
Andrew Wang, co-founder and CEO of Valon, stated that traditional mortgage servicing relies on outdated mainframe systems that have accumulated technical debt and increased costs with each regulatory change. He believes ValonOS is becoming the industry standard and that this financing will enable them to deploy it and its AI agents to all servicers nationwide.
ValonOS integrates loan data, investor reporting, workflows, compliance logic, and financial transactions into a unified system. Its AI agents are designed to automate tasks such as responding to homeowner inquiries, processing payments, and conducting escrow analyses. Linda Du, co-founder and president of Valon, highlighted that the primary challenge for deploying AI in regulated industries is context, not intelligence, and that Valon's six years of operating a mortgage servicer have informed the design of ValonOS.