Grammarly raises $1B in growth financing led by General Catalyst

Writing assistant tool Grammarly has raised $1 billion in financing from General Catalyst.

The Boston-based firm will utilise the investment from General Catalyst’s Customer Value Fund to expand its sales and marketing efforts and pursue acquisitions. The capital will also strengthen product innovation and improve market reach, the company said in a statement.  

With over 40 million daily users, the company generates over $700 million in annual revenue.

“Integrating Coda and Grammarly has unlocked tremendous potential for how people work and communicate. “I’m energised by the innovation happening across our teams as Grammarly has become a productivity platform serving everyone from individual students to growing businesses to large enterprises,” said Shishir Mehrotra, Grammarly CEO. 

"The breadth of what we can now offer is truly compelling. With General Catalyst’s continued partnership and confidence in our vision, we can scale faster and more sustainably to reach the millions of people who can benefit from our tools,” he added.

Last December, Grammarly acquired productivity startup Coda, which was valued at $1.4 billion following its Series D round in 2021, and appointed Mehrotra as CEO. 

The acquisition helped the firm to turn its AI assistant into an AI productivity tool platform, due to the addition of Coda’s AI tools and products.  The deal gave users to access to new features, such as generative AI chat and a productivity suite. 

Grammarly was founded in 2009 by Max Lytvyn, Alex Shevchenko, and Dmytro Lider. It became popular long before the advent of ChatGPT by helping people write and communicate more clearly.

Currently, several companies such as Atlassian, Databricks, and Zoom rely on the platform to brainstorm, compose, and enhance communication and integrate with over 500,000 applications and websites.