Grammarly Raises $1 Billion in Funding Round

Grammarly has secured $1 billion in financing from General Catalyst’s Customer Value Fund to enhance product innovation, expand sales and marketing, and pursue strategic acquisitions. This funding follows Grammarly’s recent acquisition of AI productivity tool maker Coda, transforming it into an AI-driven productivity platform. CEO Shishir Mehrotra expressed confidence that this partnership will accelerate Grammarly’s growth, allowing it to better serve its 40 million users and generate over $700 million in annual revenue. Grammarly’s AI assistant supports users in various writing tasks and promotes improved communication. General Catalyst’s managing director, Pranav Singhvi, sees this investment as crucial for Grammarly’s expansion, particularly in enterprise adoption. The integration of Coda is viewed as a significant milestone toward realizing Grammarly’s vision of AI collaboration across work environments, aiming to optimize writing and communication for businesses.

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