Valon Technologies has raised $150 million in a Series D round at a $2.3 billion valuation, money the company says will go toward pulling the country’s biggest mortgage servicers off mainframe software and onto its own platform.
The round, announced on the morning of Oct. 5, 2026, doubles Valon’s previous valuation, according to the company. Ribbit Capital joined as a new investor, with continued participation from existing backers including Andreessen Horowitz, which says it has backed Valon from the start and returned in every round since.
The figure that matters more to the mortgage industry than the valuation is this one: Valon says one in six outstanding U.S. mortgages is now under contract to run on ValonOS, its servicing platform. The named institutions are Rithm Capital’s Newrez, Carrington Mortgage Services and ServiceMac. Two of them — ServiceMac, which Valon describes as the fourth-largest residential subservicer, and Carrington — are already live on the system.
Valon also said it signed more than $200 million in contracted annual recurring revenue for ValonOS within six months of opening the platform to outside servicers. That is a bookings figure, not realized revenue, and the loans behind the “one in six” number are under contract rather than migrated.
A software company that ran a servicer first
Founded in 2019, Valon took a route most enterprise software companies do not. Rather than selling technology into the mortgage industry, it built a licensed national servicer and ran loans on its own platform before offering that platform to competitors. In August 2026 it sold that servicing business to Carrington Mortgage Services, which adopted ValonOS as its core servicing system — converting Valon from an operator into a vendor while leaving the operating history behind the product intact.
Chief executive Andrew Wang, a co-founder, put the pitch in terms of accumulated technical debt. “For sixty years, mortgage servicing has run on aging mainframe systems, and every regulatory change has compounded technical debt and increased costs,” he said. “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.”
ServiceMac’s chief operating officer and executive vice president, Rod Hatfield, was blunt about what a core conversion involves. “Replacing core servicing technology is a significant decision, and not one ServiceMac took lightly,” he said. “After more than 30 years in this industry, I know meaningful change requires thoughtful modernization.”
The argument for agents in a regulated business
Valon’s case for AI is narrower than most vendor pitches, and it is worth reading on its own terms. It describes ValonOS as consolidating loan data, investor reporting, operational workflows, compliance logic and money movement into one system, and presents that consolidation — not the models — as the precondition for automation. Agents built on it handle work including answering homeowner emails, allocating payments and running escrow analyses.
“The bottleneck for deploying AI agents into regulated industries is context, not intelligence,” said Linda Du, co-founder and president. “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.”
That framing — the hard part is plumbing and auditability, not model quality — is the same bet behind other large recent rounds in real estate software, including EliseAI’s $350 million raise for apartment operations, and a long way from the lighter deployments more common in mortgage so far, such as voice AI answering inbound customer calls.
Whose business this comes out of
Valon’s growth has to come out of someone’s installed base. Its own framing — sixty years of mainframe systems — points at the incumbent systems of record servicers run today, a market that includes the platforms inside Intercontinental Exchange’s mortgage technology business. Every core conversion Valon wins is a seat taken from one of those systems, which is why contracted revenue and the pace of migration, rather than the valuation, are the numbers to watch.
Investors in the round made the stickiness argument explicitly. “Servicing is the hardest, but also the stickiest, way to enter one of the largest debt markets in America,” said Angela Strange, a general partner at Andreessen Horowitz. “You have to turn regulation into code, get multiple licenses, and earn the trust of the biggest asset managers in the country. Valon has built the operating system for a $13 trillion mortgage market and is poised to do the same in other asset classes.”
Micky Malka, founder of Ribbit Capital, pointed to the operating history as the reason for backing the company now: “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.”
Valon says the same architecture should eventually apply to commercial, personal, auto and student lending, where high volumes and strict regulatory requirements create similar problems — stated intentions rather than announced products. The company is hiring across engineering, product, deployment and go-to-market in New York, San Francisco and remotely. The near-term test is operational: how quickly loans under contract actually land on the platform. More real estate technology and AI coverage follows the migrations as they are disclosed.
