Fintech company transforms $25B mortgage servicing market with proprietary software, growing 400% year-over-year and unlocking major margin improvements for the industry

October 23, 2024 09:00 AM Eastern Daylight Time

NEW YORK–(BUSINESS WIRE)–Valon, a vertically integrated mortgage servicing platform, today announced the successful completion of its $100 million Series C funding round. The round was led by WestCap with participation from new and existing investors including Andreessen Horowitz, bringing Valon’s total raised capital to $230 million since its founding in 2019.

“Valon has built a fundamentally better and more comprehensive solution for a market that has been characterized by limited technological innovation for decades”Post this

Valon solves some of the most deep-rooted challenges in the mortgage industry—an industry that has seen little disruption in nearly three decades—with a robust platform that delivers superior operational efficiency for mortgage servicers and a more seamless experience for homeowners. The latest round of funding will further accelerate Valon’s product development and market expansion, positioning Valon as the go-to software platform for an industry poised for transformation.

“From the very beginning, our goal has been to build the servicing software platform of tomorrow. That means bringing transparency, efficiency, and improved customer experience to mortgage servicing,” said Andrew Wang, CEO of Valon. “This new funding demonstrates that we’ve hit the milestones to prove our software is best in class and will allow us to double down on our technology to deliver even more value to the industry.”

Valon has achieved significant momentum, with 400% year-over-year growth and over $65 billion in mortgages serviced on its platform. The company has grown to be a top 15 U.S. subservicer in just a few years, proving that its software can fundamentally transform the mortgage servicing business. Valon is able to drive greater efficiency than the rest of the market as the first end-to-end modern servicing platform, which has translated to substantial operating margin improvements for both the company and its clients.

Moreover, Valon is expanding the market through increased consumer cross-sell, unlocking the opportunity to double or triple the total addressable market for mortgage servicers. Valon’s refinance recapture rate is consistently greater than industry average, indicating strong customer retention capabilities. The company has also launched significant new consumer businesses in property insurance and property tax appeals.

“Valon has built a fundamentally better and more comprehensive solution for a market that has been characterized by limited technological innovation for decades,” said Josh Dart, Partner at WestCap, who is joining the Valon board. “The company’s strong growth and market share gains, industry-leading innovative feature set, and best-in-class customer satisfaction underscore Valon’s ability to deliver meaningful value to both mortgage servicers and homeowners.”

To join Valon in building the future of homeownership and explore career opportunities, visit www.valon.com/careers.

About Valon

Valon is a modern mortgage servicing platform that is redefining the mortgage experience for consumers, lenders, and investors. The company’s mission is to empower every homeowner. By leveraging technology to streamline mortgage processes and provide homeowners access to simple, fair, and transparent services, Valon is creating a world where home ownership comes with ease, security, and financial know-how. Valon is headquartered in New York City. For more information, please visit www.valon.com.

About WestCap

WestCap is a strategic operating and investing firm that partners with visionary leaders to build generational businesses. Our team is comprised of seasoned industry leaders and entrepreneurs who guide companies through the most pivotal stages of growth. Some of our notable investments include Airbnb, StubHub, Ipreo, Addepar, Hopper, iCapital, SIMON, and GoodLeap. The firm has offices in New York, San Francisco and London. For more information, please visit www.westcap.com.

Contacts

Media: pr@valon.com

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