Valon, a startup developing software and AI agents used by mortgage servicing companies to manage home loans, has raised $150 million in Series D funding at a $2.3 billion valuation.

Ribbit Capital joined as a new investor, while existing investors including Andreessen Horowitz also participated, Valon said Monday. The company did not name the other investors or identify a lead investor.

The latest valuation is more than double the $1.1 billion valuation Valon reportedly received when it raised $100 million in its Series C round in October 2024.

Valon said it will use the funding to develop its products and expand its engineering, product, deployment and sales teams. The startup is hiring in New York and San Francisco, as well as for remote positions.

"For sixty years, mortgage servicing has run on aging mainframe systems, and every regulatory change has compounded technical debt and increased costs," said Valon co-founder and CEO Andrew Wang. "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."

Managing mortgages through AI

Founded in 2019, Valon develops ValonOS, a system used by mortgage servicing companies to manage loans after they are issued. The work includes collecting mortgage payments, handling taxes and insurance, and helping borrowers who fall behind on payments.

Valon first built the software for its own mortgage servicing business before selling it to other companies. In August, it sold that business to Carrington Mortgage Services, which took over about 810,000 loans and started using ValonOS.

Carrington and ServiceMac, which Valon said are among the 10 largest U.S. mortgage servicers, are now using the platform. Newrez has also signed up.

Valon said one in six outstanding U.S. mortgages is now under contract to run on ValonOS. It also said it signed more than $200 million in contracted annual recurring revenue within six months of opening the platform to other mortgage companies.

Valon also launched an AI agent called Ditto this year that can handle different tasks, including homeowner communications, escrow analysis, complaint research, and payment re-allocations.

Valon said the AI's work can be checked because the platform keeps a record of what information it used and what actions it took.

"The bottleneck for deploying AI agents into regulated industries is context, not intelligence," said Valon co-founder and President Linda Du. "Mortgage servicing is a heavily regulated, edge-case-driven business."

Plans to expand beyond mortgages

Valon eventually plans to offer its technology in other regulated lending markets, including commercial, personal, auto and student loans.

The startup said these sectors have similar requirements, including processing large numbers of transactions and following detailed regulations.

"Valon has built the operating system for a $13 trillion mortgage market and is poised to do the same in other asset classes," said Angela Strange, general partner at Andreessen Horowitz. "We've backed Valon from the start, and have come back in every round since."

The Series D brings Valon's disclosed funding to at least $380 million, excluding an undisclosed strategic investment from Rithm Capital in February.