Grammarly Raises $1B to Expand AI Productivity Platform

Grammarly has secured $1 billion in non-dilutive financing from General Catalyst’s Customer Value Fund, representing one of the fund's largest investments to date. The capital will be used to scale sales, marketing, and make strategic acquisitions, while freeing up Grammarly’s existing resources for product development and innovation. This follows Grammarly’s acquisition of productivity platform Coda, with its CEO, Shishir Mehrotra, now leading Grammarly as it evolves into a broader AI-powered productivity platform. The financing structure gives General Catalyst a capped return based on revenue generated from the investment, preserving Grammarly’s ownership and valuation. With over 40 million users and annual revenue above $700 million, Grammarly is accelerating growth, expanding AI offerings, and positioning for a possible future IPO. The investment also underscores the dominance of AI in venture funding, with nearly half of recent U.S. venture investments targeting AI enterprises.