Valon's $150M raise ups ante vs. ICE, Sagent in servicing

Mortgage servicing platform Valon Technologies announced a $150 million Series D venture capital raise, with the development the latest news highlighting the current industry pivot toward AI software. 

The news raises the stakes in the servicing technology battle, with Valon now asserting one of every six U.S. mortgages will be handled through its platform. As companies discover the benefits and efficiencies emerging from AI, the technology is rapidly turning into a must-have rather than a want within the mortgage industry.

"For sixty years, mortgage servicing has run on aging mainframe systems, and every regulatory change has compounded technical debt and increased costs," said Valon CEO Andrew Wang in a press release. "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," he continued.    

Along with recent highly publicized deals that will bring the full loan portfolios of Newrez and Carrington Mortgages Services onto its operating system, Valon also revealed ServiceMac was already live on the platform, giving it claim to two out of the country's top 10 servicers as customers. ServiceMac counts itself as the fourth-largest subservicer in the U.S. 

"After more than 30 years in this industry, I know meaningful change requires thoughtful modernization," said ServiceMac Chief Operating Officer Rod Hatfield, who added the decision to switch platforms was not taken lightly.

The $150 million round was led by new investor Ribbit Capital, with the firm joining existing funding partners, including Andreessen Horowitz. Valon is now worth $2.3 billion, doubling its last valuation. The seven-year-old company achieved unicorn status in 2024.

Background on Valon

Valon intends to use new funding to accelerate its development and grow its team, with hiring expected in engineering, product, deployment and go-to-market operations. 

The company initially launched as both a servicer and tech software provider, as it sought to establish its understanding and expertise in mortgage industry operations. The 2026 sale of its servicing operations and pivot to a standalone technology business was part of Valon's original plan, Wang previously said to National Mortgage News.

"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," said Micky Malka, founder of Ribbit Capital. 

With the capacity to tap into the full scope of data held within ValonOS, the platform's AI agents will be able to accomplish tasks from answering emails to allocating payments and running escrow analysis, Valon said.

Valon's funding round is the latest in a series of servicing-technology-related announcements this year, accelerating the pace of AI adoption and illustrating the heightened fight for market share among top industry players in 2026. After seeing a minority investment agreement coming from Newrez parent Rithm Capital to start the year, Valon followed with the Carrington servicing deal, eventually transferring the latter's 2 million liens onto the platform. 

Meanwhile, rivals, including legacy software firms Sagent and ICE Mortgage Technology, are not holding back in their AI development either, touting their wealth of data as they push back publicly on Valon's claims their systems are outdated.  

In a win of its own last week, the mortgage technology unit of Intercontinental Exchange celebrated an expanded servicing agreement with Wells Fargo. 

Sagent also recently homed in on artificial intelligence development for its Dara servicing platform by elevating Sridhar Sharma, its former president, to CEO. Sharma previously served as chief innovation and digital officer at Mr. Cooper.