Grammarly Secures $1 Billion from General Catalyst to Fuel AI Productivity Platform Growth

 Grammarly, the go-to AI tool for sharpening your writing and boosting productivity, just scored a massive $1 billion investment from General Catalyst. This cash injection is a huge vote of confidence in Grammarly’s evolution from a grammar checker to a full-blown AI productivity platform, especially after snapping up Coda earlier this year in January 2025.

Grammarly plans to use this funding to supercharge its growth. We’re talking ramping up sales and marketing efforts, reaching more users, and maybe even scooping up a few more strategic acquisitions. With over 40 million people already using Grammarly every day and the company pulling in over $700 million in revenue annually, this money is set to fuel some serious expansion.

Shishir Mehrotra, Grammarly’s CEO, is pumped about the possibilities. “Merging Coda with Grammarly has opened up a whole new world for how people work and communicate,” he said. “Our team’s innovating like crazy, building tools that help everyone—students, small businesses, big corporations. With General Catalyst backing us, we’re ready to grow faster and bring our platform to even more people.”

Pranav Singhvi from General Catalyst’s Customer Value Fund, which led the investment, called it a “strategic game-changer” for Grammarly’s next chapter. Hemant Taneja, General Catalyst’s CEO, added, “We’ve been with Grammarly for years as they pioneered AI-driven tools. This investment will help them transform how businesses work and communicate, creating huge value in the long run.”