Grammarly secures $1B from General Catalyst to expand its AI productivity platform

Grammarly, an AI writing assistance company, announced it has secured $1B (nearly €881M) in financing from General Catalyst.

The funding reflects General Catalyst’s ongoing support of Grammarly, which became an AI productivity platform for apps and agents after acquiring Coda in January 2025. Coda is a workspace platform used by over 50,000 teams worldwide to organise and manage work. It offers tools that support team workflows, including meetings and planning processes.

Shishir Mehrotra, Grammarly’s CEO, says, “Integrating Coda and Grammarly has unlocked tremendous potential for how people work and communicate. I’m energised 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,” adds Mehrotra.

The AI productivity platform

Grammarly was developed in Ukraine in 2009 by Alex Shevchenko, Max Lytvyn, and Dmytro Lider to help users improve writing and communication. It serves over 40 million users and 50,000 organisations through its AI productivity platform. 

The company powers AI infrastructure across over 500,000 applications and websites, enabling users to compose, edit, and improve communication through AI agents such as proofreading, paraphrasing, tone suggestion, and content analysis tools.

Grammarly offers different service levels tailored to various users. Grammarly Free helps users improve their everyday writing. Grammarly Pro provides additional tools to help professionals and teams organise their work and improve documents and messages. 

Grammarly Enterprise supports businesses by maintaining brand standards, managing administrative functions, and facilitating knowledge sharing. And Grammarly for Education offers writing support to schools, helping students build writing and critical thinking skills.

In 2025, Grammarly acquired Coda, a company focused on AI productivity tools. Coda developed Coda Docs and Coda Brain, which help users manage knowledge and workflows. 

Together, Grammarly and Coda aim to reshape how AI is used in daily work, supporting tasks with contextual understanding and integrated functionality. Companies such as Atlassian, Databricks, and Zoom use Grammarly to support communication and workflows.

Capital utilisation

Grammarly plans to use General Catalyst’s Customer Value Fund (CVF) funds to support its ongoing growth strategy. The company looks to scale its sales and marketing operations, advance product development, and pursue strategic acquisitions.

The funding will also help Grammarly expand its customer base and extend the reach of its AI productivity platform. Currently, over 40 million users use Grammarly, contributing to annual revenue exceeding $700M.

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

Hemant Taneja, CEO of General Catalyst, adds, “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.”