Valon Technologies, an AI-native operating system for regulated finance, has raised $150 million in Series D funding at a $2.3 billion valuation, more than doubling its previous valuation.
The funding round was led by new investor Ribbit Capital, with continued participation from existing investors including Andreessen Horowitz (a16z).
Valon plans to use the new capital to accelerate product development and expand its teams as it works to move large mortgage servicers from legacy technology systems to its ValonOS platform and AI agents.
Founded in 2019, Valon initially built and operated its own mortgage servicing business using its technology before making the platform available to other companies. Within six months of launching ValonOS commercially, the company signed more than $200 million in contracted annual recurring revenue.
“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,” said 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,” said Micky Malka, founder of Ribbit Capital. “We’re proud to back them as they build the trusted platform that mortgage servicing can run on for decades to come.”
Today, Valon says one in six outstanding U.S. mortgages is under contract to run on ValonOS. Its customers include Newrez, Carrington Mortgage Services and ServiceMac.
Two of the 10 largest U.S. mortgage servicers are already live on the platform: ServiceMac, the fourth-largest residential subservicer, and Carrington Mortgage Services.
“Replacing core servicing technology is a significant decision, and not one ServiceMac took lightly,” said Rod Hatfield, Chief Operating Officer and Executive Vice President of ServiceMac. “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.”
“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,” said Linda Du, co-founder and President of Valon.
ValonOS combines loan data, investor reporting, operational workflows, compliance processes and money movement in a single system. The company uses this infrastructure to deploy AI agents across mortgage servicing operations.
Its AI agents can handle tasks such as responding to homeowner emails, allocating mortgage payments and conducting escrow analyses. Valon says the platform is designed with structured data, built-in tools and audit trails to support AI use in regulated financial environments.
The company also plans to expand beyond mortgage servicing into other regulated lending markets, including commercial, personal, auto and student lending.
With the latest funding, Valon is hiring across engineering, product, deployment and go-to-market roles as it expands its AI platform and works to replace legacy systems across regulated finance.
