Grammarly Secures $1 Billion to Expand AI Platform
Grammarly has secured $1 billion in non-dilutive financing from General Catalyst’s Customer Value Fund, marking one of the largest investments in the AI space. Announced on May 29, 2025, this move signals Grammarly’s ambition to become a comprehensive AI platform for workplace productivity.
Strategic Funding for AI Platform Growth
Unlike traditional equity deals, this investment grants General Catalyst no ownership stake. Instead, returns are tied to revenue generated through customer acquisition. This structure frees up Grammarly’s capital for product development and strategic acquisitions rather than marketing spend (Reuters).
According to General Catalyst, Grammarly has a proven customer acquisition engine capable of delivering predictable returns. With 40 million daily active users, Grammarly is now positioned to scale its AI platform more aggressively.
Coda Acquisition: Enhancing the AI Productivity Stack
In December 2024, Grammarly acquired Coda, a productivity tool known for its collaborative documents and embedded AI. The move complements Grammarly’s writing assistant with a full-stack AI platform for collaboration and productivity (TechCrunch).
Coda’s CEO, Shishir Mehrotra, is now Grammarly’s new chief executive. His focus includes:
- Integrating Coda Brain’s knowledge system for smarter AI responses
- Providing a shared workspace with permission-aware collaboration tools
Users can now benefit from intelligent writing and context-aware collaboration in one unified platform across email, CRM, and project tools.
Grammarly’s Soaring Usage and Financial Metrics
In 2025, Grammarly’s daily active users have grown to 40 million—up from just 1 million in 2015 (ElectroIQ). The platform now serves:
- 50,000 organizations
- 96% of Fortune 500 companies
- 1.8 million Premium subscribers
With over \$700 million in annual revenue and 80% gross margins, Grammarly maintains a strong business model across consumer and enterprise segments (Sacra, Grammarly blog).
Vision: Leading the Future of the AI Workplace
Grammarly’s goal is to redefine productivity through its evolving AI platform. By combining intelligent writing assistance with Coda’s collaborative capabilities, Grammarly aims to support seamless human-AI interaction in modern workplaces.
While an IPO may be on the horizon, Mehrotra insists that the focus for now remains on innovation and platform scale (Newsweek).
Competitive Landscape and Outlook
Grammarly is entering a heated race in the AI productivity space alongside Microsoft and OpenAI. But with \$1 billion in fresh capital and a strategic acquisition already in place, the company is uniquely positioned to lead the next wave of AI platform evolution (Yahoo Finance, TechFundingNews).
