Valon Technologies has raised $150 million at a $2.3 billion valuation as the technology company moves into the next phase of an ambitious strategy: getting some of the nation's largest servicers to replace their core systems with ValonOS.
The Series D includes new investor Ribbit Capital alongside existing investors including Andreessen Horowitz. Valon said the new valuation is double its previous valuation and that the capital will be used to accelerate product development and expand its engineering, product, deployment, and go-to-market teams.
But the size of the funding round may be less significant to the industry than the scale Valon says it has already contracted.
Servicers responsible for one in six outstanding U.S. mortgages are under contract to run on ValonOS, according to the company, including Rithm Capital's Newrez, Carrington Mortgage Services, and ServiceMac. Valon also says it signed more than $200 million in contracted annual recurring revenue within six months of offering ValonOS to outside companies.
That does not mean one in six U.S. mortgages currently runs on Valon's technology. Some of its biggest migrations are still ahead.
Newrez, for example, announced earlier this year that it plans to deploy ValonOS across servicing for more than 4 million homeowners, with the transition beginning in 2027. Rithm Capital, Newrez's parent, is also an investor in Valon.
From Servicer To Software Company
Founded in 2019, the company built Valon Mortgage and operated a licensed national servicer using its own technology before offering ValonOS more broadly. The strategy allowed Valon to develop and test the platform inside the same regulated environment in which its future customers would use it.
That first phase effectively ended this summer.
In August, Carrington completed its acquisition of Valon Mortgage, adding approximately 810,000 loans to its servicing operation while adopting ValonOS as its core platform. The combined Carrington operation was expected to approach 2 million loans.
Carrington's adoption followed an earlier commitment from Newrez, pushing Valon's technology beyond the operation where it was originally developed.
Valon CEO and co-founder Andrew Wang has described that evolution as intentional. Following the Carrington transaction, Wang said the company had taken the unusual route of operating a servicer to prove its software before focusing on selling the technology to the broader industry.
The Bigger Test
Valon's pitch goes beyond adding AI tools to existing servicing systems. ValonOS combines loan data, investor reporting, compliance, operational workflows, and money movement, with AI agents handling tasks including borrower communications, payment allocation, and escrow analyses.
But Valon's next test is scale.
The company spent years proving its technology inside an operation it controlled. Now it has to deliver inside established servicers with millions of loans, existing processes, and their own compliance demands.
The $150 million raise gives Valon more firepower to make that transition, and puts a $2.3 billion valuation behind the bet that some of the industry's largest servicers are ready to rethink the technology running their portfolios.
