Grammarly Announces $1 Billion Growth Financing With General Catalyst

Grammarly, the trusted AI assistant for communication and productivity, announced the closing of $1 billion in financing from General Catalyst. This underscores General Catalyst’s longtime commitment to Grammarly, which has evolved into an AI productivity platform for apps and agents following the acquisition of Coda in January 2025.

Grammarly will use the go-to-market investment from General Catalyst’s Customer Value Fund (CVF) to scale sales and marketing and for strategic acquisitions. The new capital enables Grammarly to grow its customer base and extend the reach of its AI productivity platform.

More than 40 million users rely on Grammarly daily, contributing to Grammarly’s annual revenue of more than $700 million. This latest financing will enable Grammarly to further accelerate its growth through investments across product innovation, sales and marketing, and strategic acquisitions.

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“Integrating Coda and Grammarly has unlocked tremendous potential for how people work and communicate,” said Shishir Mehrotra, Grammarly CEO. “I’m energized 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. 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.”

“This investment represents more than just capital; we believe it’s a strategic enabler for the next phase of Grammarly’s growth,” said Pranav Singhvi, Managing Director and Co-Head of the CVF.

“We’ve been working with the Grammarly team for years as they became an early leader in applied AI. We are confident that this extension of our partnership will create significant long-term value and continue to drive Grammarly’s ability to accelerate enterprise adoption through transformed workflows and communication across industries,” said Hemant Taneja, CEO of General Catalyst.

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The AI Productivity Platform

Grammarly powers the infrastructure that brings AI directly to users across 500,000-plus applications and websites, enabling AI agents, including Grammarly’s proofreading, paraphrasing, tone suggestion, and AI detector agents, to seamlessly read, enhance, suggest, and edit content, working directly alongside users. Coda has spent the past few years perfecting Coda Docs, a powerful, flexible productivity suite, and recently introduced Coda Brain, which unlocks company knowledge and makes it actionable. Together, Grammarly and Coda are leading the shift in how AI integrates into workdays, building technology that functions like a thoughtful colleague, recognizes context, and helps people accomplish more with less effort.