- Series D values Valon at $2.3B, double its previous valuation.
- One in six US mortgages is contracted to run on ValonOS.
- Ribbit joins a16z; Newrez rollout starts in 2027.
New York-based Valon has raised $150 million in Series D funding at a $2.3 billion valuation, as the AI-native fintech goes after one of financial services’ least glamorous technology problems: mortgage servicing.
Ribbit Capital joins as a new investor, according to the company, alongside continued backing from Andreessen Horowitz and existing investors. The round doubles Valon’s previous valuation.
The money will fund product development, hiring and the rollout of ValonOS and its AI agents across the servicing industry. Valon is hiring across engineering, product, deployment and go-to-market in New York, San Francisco and remotely.
From running a servicer to selling the software
Andrew Wang, Linda Du, Eric Chiang, and Jonathan Hsu founded Valon in 2019. Rather than selling software to servicers from day one, the company first built and ran its own licensed national servicing business on its own platform. ValonOS grew out of that, replacing fragmented legacy systems for loan data, investor reporting, workflows, compliance and money movement with a single system.
Wang, co-founder and CEO, said the old stack is running out of road. “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.”
That in-house servicer is now gone. In August 2026, Carrington Mortgage Services completed its acquisition of Valon Mortgage and adopted ValonOS as its core platform, with a combined book expected to approach 2 million loans. Valon describes itself as a pure software company as a result.
Micky Malka, founder of Ribbit Capital, framed the pitch around that history. “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.”
One in six US mortgages
Valon says it signed more than $200 million in contracted annual recurring revenue within six months of opening ValonOS to outside customers, and that one in six outstanding US mortgages is now under contract to run on it. Both figures are company-reported.
The distinction between contracted and live matters here. According to Valon, ServiceMac, the fourth-largest residential subservicer, and Carrington are already running on ValonOS, and those are two of the country’s 10 largest servicers. Newrez, the servicing arm of Rithm Capital, is not yet.
Rithm, an early Valon investor, said in early 2026 that Newrez, which services more than 4 million homeowners, is expected to begin moving to ValonOS in 2027. Rithm is therefore both an investor and a customer, and a large part of the headline number depends on migrations that have yet to happen.
The prize is large. The Federal Reserve Bank of New York reported $13.1 trillion in outstanding US mortgage balances at the end of Q2 2026.
AI agents meet regulated finance
Valon is building AI agents on top of that servicing data. They handle homeowner emails, allocate payments and run escrow analyses. Du, co-founder and president, argued the hard part is not the model.
“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.”
Valon thinks the same architecture can reach commercial, personal, auto and student lending, where servicing also depends on high-volume transactions and compliance.
Angela Strange, general partner at Andreessen Horowitz, said servicing is the hard way in. “Servicing is the hardest, but also the stickiest, way to enter one of the largest debt markets in America. 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.”
The fintech infrastructure race
Valon’s $100 million Series C, led by WestCap in October 2024, took total funding to $230 million at the time. Carrington’s August release put funding at more than $290 million before this round, which suggests the total now exceeds $440 million (TFN calculation).
Mortgage tech is attracting large rounds elsewhere. Canada’s Nesto raised C$302 million, according to FinTech Futures. Only C$107 million was new capital, with the rest secondary. A16z is also backing vertical AI in property, having co-led EliseAI’s $350 million round at a $4 billion valuation on September 30, 2026.
Valon has tied its pitch to margins as well as scale. Wang has said publicly on LinkedIn that Valon’s own servicing business moved from break-even to 70%-plus operating margins on ValonOS, though that is the CEO’s figure, not an audited one.
