Grammarly Announces $1 Billion Growth in Financing
Grammarly, the AI assistant for communication and productivity, has announced the closing of $1 billion in financing from investment firm General Catalyst. According to a press release, the company will use the go-to-market investment from General Catalyst’s Customer Value Fund to scale sales and marketing and for strategic acquisitions.
The deal follows Grammarly’s acquisition of Coda in January 2025, which expanded their service into a comprehensive AI productivity tool and put them in direct competition with tech powerhouses Microsoft and Google.
“Integrating Coda and Grammarly has unlocked tremendous potential for how people work and communicate,” Shishir Mehrotra, Grammarly’s CEO, said. “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.”
More than 40 million people use Grammarly daily, contributing to the service’s annual revenue of more than $700 million.
