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Grammarly secures $1 billion in funding from General Catalyst to scale its AI-powered productivity platform following the acquisition of Coda. The investment supports expansion in sales, marketing, and strategic acquisitions while deepening integration across over 500,000 applications. With more than 40 million users and 50,000 organizations, Grammarly strengthens its position in enterprise communication and AI-assisted workflows.
Why Investors Are Betting Big on Grammarly Right Now
Grammarly has secured $1 billion in financing from General Catalyst, marking a significant milestone in its growth strategy. The investment follows Grammarly’s January 2025 acquisition of Coda, a productivity platform known for Coda Docs and Coda Brain. This new funding underscores the long-standing relationship between General Catalyst and Grammarly. The capital will be used to support Grammarly’s expansion into new markets, strengthen its sales and marketing efforts, and facilitate additional acquisitions.
Pranav Singhvi, Managing Director and Co-Head of General Catalyst’s Customer Value Fund (CVF), described the funding as a strategic enabler for Grammarly’s next phase. The firm’s CEO, Hemant Taneja, emphasized the collaboration’s potential to drive long-term value and expand Grammarly’s capabilities in applied AI across multiple industries.
Inside Grammarly’s AI Productivity Engine
Grammarly functions as an AI assistant focused on improving communication and productivity. Its platform integrates with over 500,000 applications and websites, allowing users to access features such as proofreading, paraphrasing, tone suggestions, and AI content detection. These agents work in real-time, editing and enhancing written communication across various platforms.
The company’s infrastructure delivers AI support directly within users’ workflows, with tools that recognize context and aim to improve clarity, tone, and engagement. This foundation supports both individuals and teams in streamlining communication and increasing efficiency.
How Grammarly Plans to Use the $1 Billion
The financing will be applied toward scaling Grammarly’s go-to-market operations, which include enhanced sales channels, marketing initiatives, and targeted strategic acquisitions. The goal is to accelerate growth and deepen the reach of Grammarly’s AI productivity platform.
With Coda now part of Grammarly, the integration strengthens the platform’s capabilities. Coda’s focus on transforming documents into collaborative workspaces complements Grammarly’s communication tools, creating a broader ecosystem designed to support diverse user needs.
Meet the Power Users: Who Grammarly Serves Today
Grammarly is used by more than 40 million individuals each day and serves over 50,000 organizations. Its tools are used by a wide range of users, from students working on academic assignments to global enterprises optimizing business communication.
Companies like Atlassian, Databricks, and Zoom rely on Grammarly’s AI assistant to streamline messaging, compose content, and improve team collaboration. Grammarly adapts to different professional environments, making it relevant for both individual and enterprise-level applications.
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Behind the Deal: Why General Catalyst Doubles Down
General Catalyst’s continued support reflects confidence in Grammarly’s growth trajectory and strategic direction. The investment is led through its Customer Value Fund, a mechanism designed to align capital with customer and market value.
Leadership at General Catalyst highlighted Grammarly’s early adoption of applied AI and its evolution into a full-fledged productivity platform. The extended partnership is aimed at expanding Grammarly’s influence in enterprise markets and improving digital communication across sectors.
What This Means for the Future of Work and Communication
Grammarly’s tools are designed to embed seamlessly into everyday workflows, transforming how individuals and teams create and refine written content. With its technology integrated into over 500,000 applications, the company plays a key role in supporting efficient and accurate communication.
The addition of Coda enhances this capability by turning static documents into dynamic knowledge hubs. Coda Brain, developed prior to the acquisition, further deepens this value by connecting company-wide knowledge and making it actionable through intelligent systems.
How Grammarly Stays Ahead in the Crowded AI Market
Grammarly maintains a competitive edge through scale, integration, and feature depth. Its platform is built to function as a collaborative tool rather than a passive editor. By integrating Coda’s systems and continuing to develop AI-powered agents, Grammarly reinforces its utility across sectors.
Key differentiators include:
- Seamless integration with over half a million digital platforms
- AI tools for tone, clarity, rewriting, and detection
- A growing base of enterprise clients
- Unified vision following the Coda acquisition
This positioning strengthens its foothold in a market increasingly reliant on adaptive AI tools for productivity.
A Major Milestone in Grammarly’s Ongoing Growth Story
The $1 billion financing represents more than capital—it highlights Grammarly’s role in shaping the future of digital communication. With support from General Catalyst and the integration of Coda’s technology, the company is advancing toward broader adoption and continued platform innovation. The scale of investment signals trust in Grammarly’s long-term value and its potential to support how people write and collaborate in an AI-driven landscape.
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