In one of the largest capital raises in the AI productivity space this year, Grammarly, led by India-origin CEO Shishir Mehrotra, has secured $1 billion in non-dilutive funding from its long-time backer General Catalyst. The fresh capital infusion underscores Grammarly’s transition from a writing tool into a horizontal AI productivity platform for individuals and enterprises alike.
Key Highlights of the Funding Deal
- The funding comes through General Catalyst’s Customer Value Fund, focused on go-to-market growth initiatives.
- Grammarly intends to utilize the funds to:
- Scale its sales and marketing operations
- Make strategic acquisitions to expand its ecosystem
- The round follows Grammarly’s recent acquisition of Coda, a collaborative productivity platform, which broadened its service portfolio.
Grammarly’s Evolving Product Strategy
- With over 40 million daily users and $700 million+ in annual revenue, Grammarly is no longer just a writing assistant.
- It now positions itself as a comprehensive AI productivity platform spanning:
- Writing and editing
- AI agents for tone, structure, grammar, and clarity
- Enterprise knowledge tools
- Grammarly’s flagship tools currently operate across 500,000+ apps and websites, offering real-time support where users already work.
Integration with Coda
- The acquisition of Coda brought in advanced tools like:
- Coda Docs: for document collaboration
- Coda Brain: enabling companies to access and apply internal knowledge quickly
- This integration aligns with Grammarly’s strategy to enable intelligent workflow automation and communication tools for enterprise teams.
Strategic Backing from General Catalyst
“We are confident that this extension of our partnership will create significant long-term value,” said Hemant Taneja, CEO of General Catalyst.
“Grammarly’s evolution is a testament to what long-term product vision and customer-centricity can achieve.”
Pranav Singhvi, Managing Director at General Catalyst, called the investment a “strategic enabler” for Grammarly’s enterprise ambitions.
Grammarly’s Vision for the Future
- Grammarly sees itself competing in a broader field, taking on established giants like Microsoft, Google, and Notion in the productivity suite space.
- The company is betting on its AI infrastructure and widespread application compatibility to drive adoption across education, business, and enterprise verticals.
“Grammarly is now a productivity platform serving students, businesses, and large enterprises alike,” said CEO Shishir Mehrotra.
“With this new backing, we’re scaling how AI supports human communication at every level.”
