• Grammarly raised $1 billion in non-dilutive funding from General Catalyst to expand sales, marketing, and strategic acquisitions.
  • The company now supports over 500,000 apps and websites and has over 40 million daily users.

Grammarly, the AI-powered communication platform, has raised $1 billion in non-dilutive financing from existing investor General Catalyst.

The funding marks one of the largest late-stage investments in the AI productivity space this year. It was backed by General Catalyst’s Customer Value Fund, which is focused on scaling go-to-market initiatives.

Shifting From Writing Tool to Productivity Suite

This funding follows Grammarly’s recent acquisition of Coda, a collaborative document platform.

The move has allowed the company to expand its footprint beyond writing assistance into broader enterprise productivity and workflow automation.

According to CEO Shishir Mehrotra, the integration with Coda has repositioned Grammarly into a comprehensive productivity platform.

"Grammarly has become a productivity platform serving everyone from individual students to growing businesses to large enterprises," Mehrotra said.

Grammarly now boasts more than 40 million daily users and generates over $700 million in annual revenue.

Its AI agents support functions like proofreading, tone adjustment, paraphrasing, and content detection, and are now compatible with more than 500,000 apps and websites.

The company also inherits Coda’s internal tools, Coda Docs and Coda Brain, which streamline company knowledge sharing and actionability.

The capital will be used to accelerate Grammarly’s sales and marketing initiatives, along with potential strategic acquisitions. General Catalyst’s Managing Director Pranav Singhvi called the deal a “strategic enabler,” while the firm’s CEO Hemant Taneja emphasised their continued confidence in Grammarly’s AI-first, enterprise-oriented roadmap.

The investment positions Grammarly to challenge major players like Microsoft, Google, and Notion, as AI infrastructure firms continue to redefine productivity and workflow automation tools.

Edited by Annette George