Valon Technologies has raised $150 million in Series D funding at a $2.3 billion valuation as the fintech company expands its AI-native operating system for mortgage servicing.

The latest round doubles Valon's previous valuation and brings new investor Ribbit Capital into the company alongside existing backers, including Andreessen Horowitz.

Founded in 2019, Valon is building ValonOS, an operating system designed to replace the fragmented legacy software used by mortgage servicers. The platform combines loan data, investor reporting, operational workflows, compliance logic and money movement in a single system, with AI agents built directly into the platform.

The company says one in six outstanding U.S. mortgages is now under contract to run on ValonOS.

The new funding will be used to accelerate product development, expand Valon's teams and move more large mortgage servicers from legacy systems onto ValonOS and its AI agents.

From running a mortgage servicer to selling the technology

Valon's approach to entering the mortgage industry has been different from a typical enterprise software company.

Rather than immediately selling software to established mortgage servicers, the company first built and operated a full-scale servicing business on its own technology.

That gave Valon the opportunity to develop its software while handling real mortgage servicing operations, regulatory requirements and customer interactions.

The company later opened ValonOS to other servicers.

Within six months of making the platform available to the industry, Valon says it had signed more than $200 million in contracted annual recurring revenue.

Today, ValonOS is contracted to power mortgage operations for some of the largest institutions in the U.S., including Rithm Capital's Newrez, Carrington Mortgage Services and ServiceMac.

The company says one in six outstanding U.S. mortgages is under contract to run on its platform.

That level of contracted coverage gives Valon a much larger position in mortgage servicing than its fundraising headline alone suggests.

ValonOS targets mortgage servicing's legacy technology

Mortgage servicing involves managing loans after they have been originated. Servicers handle activities such as payment processing, escrow management, investor reporting, customer communications and regulatory compliance.

Many of these workflows depend on older technology systems that have accumulated layers of complexity over decades.

Valon is positioning ValonOS as a replacement for that patchwork.

The platform provides a single system for loan data, investor reporting, operational workflows, compliance rules and money movement. AI agents then operate on top of that structured environment.

The company's strategy is based on the idea that AI agents need more than access to a general-purpose language model to safely perform work in a regulated financial environment.

They need reliable data, defined workflows, clear decision traces and the ability to execute controlled actions.

Linda Du, co-founder and President of Valon, said the company believes the main obstacle to deploying AI agents in regulated industries is context rather than intelligence.

Valon spent six years running a mortgage servicer and says that experience helped it build an internal data model and operating framework based on how mortgage servicing actually works.

AI agents inside mortgage operations

Valon is using its operating system as the foundation for AI agents that can handle specific servicing tasks.

These include responding to homeowner emails, allocating mortgage payments and performing escrow analyses.

The goal is not simply to use AI to generate text. The agents are designed to work inside operational processes where the system can provide structured data, tools and an audit trail.

That distinction becomes important in mortgage servicing because mistakes can have financial and regulatory consequences.

For an AI agent to move money, update information or make a servicing decision, the underlying system needs to know what the agent is allowed to do and preserve a record of what happened.

Valon says its architecture combines a single source of truth with structured context, callable tools and decision traces.

This approach is also part of the company's argument for building AI directly into a purpose-built operating system rather than adding AI as another layer on top of existing legacy software.

Two of the largest U.S. servicers are already live

Valon's expansion is already reaching major mortgage servicing organizations.

ServiceMac, described by the company as the fourth-largest residential subservicer, is live on ValonOS. Carrington Mortgage Services is also using ValonOS as its core servicing platform after acquiring Valon's servicing business in August.

Rod Hatfield, Chief Operating Officer and Executive Vice President of ServiceMac, said replacing core servicing technology was a significant decision and that Valon's platform supports ServiceMac's efforts around operational efficiency, risk management, compliance and customer service.

Valon says its platform is also contracted with Rithm Capital's Newrez.

The presence of large servicers is important because replacing core mortgage servicing technology is not a simple software deployment. Servicers operate within heavily regulated environments and manage large volumes of financial transactions and customer information.

Valon's decision to build and operate its own servicing business before selling ValonOS gives the company an operating track record it can use when approaching other institutions.

$150M Series D brings Ribbit Capital into the company

Ribbit Capital led the latest investment alongside continued participation from existing investors.

The firm was founded by Micky Malka and focuses on financial technology investments.

Malka said Valon was addressing an area of financial services that still relies heavily on complex legacy systems despite mortgages being one of the largest financial obligations for consumers.

Andreessen Horowitz also continued its backing of Valon.

Angela Strange, General Partner at Andreessen Horowitz, said the firm has supported Valon since its beginning and has participated in every round since.

The investment reflects a broader thesis around modernizing regulated financial infrastructure rather than simply building another consumer-facing fintech application.

Valon's latest valuation of $2.3 billion is double its previous valuation, giving the company a significantly higher valuation as it expands its enterprise customer base.

The $13 trillion mortgage market

Valon's opportunity extends across a U.S. mortgage market that the company describes as approximately $13 trillion.

Mortgage servicing is a particularly difficult segment to modernize because the technology needs to handle large transaction volumes while meeting strict regulatory and operational requirements.

That complexity is also what creates a potential advantage for companies that successfully build infrastructure for the sector.

Valon argues that servicing can become the entry point for applying its architecture to other forms of regulated lending.

Commercial lending, personal lending, auto loans and student loans all involve combinations of transaction processing, compliance requirements and operational workflows.

The company plans to expand beyond mortgages over time and apply Valon's architecture to adjacent asset classes.

What comes next for Valon

The immediate priority is expanding ValonOS across more mortgage servicers.

The company is hiring across engineering, product, deployment and go-to-market functions, with roles in New York, San Francisco and remotely.

The $150 million Series D gives Valon additional capital to develop its operating system and AI agents while supporting deployments at large financial institutions.

The bigger question is whether Valon can turn its early traction into a broader infrastructure platform for regulated finance.

Its current position is notable. The company says one in six outstanding U.S. mortgages is already under contract to run on ValonOS, while two of the ten largest U.S. servicers are live on the platform.

If Valon can continue converting major servicers from legacy systems and demonstrate that its AI agents can operate reliably inside highly regulated workflows, mortgage servicing could become the foundation for a much broader financial infrastructure business.

For now, the company has raised $150 million at a $2.3 billion valuation to push that strategy further, with Ribbit Capital joining Andreessen Horowitz and other existing investors behind its next stage of growth.