Valon Technologies closed a $150 million Series D at a $2.3 billion valuation, doubling its prior valuation with participation from Ribbit Capital and continued backing from Andreessen Horowitz.
The company operates an AI-native operating system for mortgage servicing designed to replace aging mainframe infrastructure. Within six months of opening ValonOS to the industry, Valon secured more than $200 million in contracted annual recurring revenue. The platform now powers contracts covering one in six outstanding U.S. mortgages, including deployments at ServiceMac, the fourth-largest residential subservicer, and Carrington Mortgage Services.
Valon's path to market differed from typical software plays. Rather than selling directly to servicers, the company built and operated its own mortgage servicing business using ValonOS as the backbone. This approach validated the system at operational scale before offering it to competitors. Carrington Mortgage Services acquired Valon's servicing business in August and subsequently adopted ValonOS as its primary core platform.
Andrew Wang, co-founder and CEO, said mortgage servicing has relied on mainframe systems for six decades, with each regulatory change adding technical debt and operational costs. "The funding will enable deployment of ValonOS and our AI agents to servicers nationwide," Wang said.
Micky Malka, founder of Ribbit Capital, said the market needed participants willing to prove infrastructure improvements work at scale. "Andrew, Linda, Brian, and the Valon team took on a part of financial services that is badly in need of better technology," Malka said.
Valon will use the capital for product development, team expansion across engineering, product, deployment and go-to-market roles in New York, San Francisco and remote positions.
Rod Hatfield, chief operating officer and executive vice president of ServiceMac, said replacing core servicing technology required careful evaluation. "After more than 30 years in the industry, I understand that meaningful change requires thoughtful modernization, and Valon's capabilities support efforts for teams to work more effectively," Hatfield said.
