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Grammarly Secures $1 Billion from General Catalyst to Expand AI Productivity

Grammarly, the AI-powered writing assistance company, has secured $1 billion in non-dilutive funding from General Catalyst, allowing it to expand without giving up equity. The investment comes from General Catalyst’s Customer Value Fund (CVF), a financing pool designed to help late-stage startups grow by leveraging predictable revenue streams.

Grammarly plans to use the funds to scale its sales and marketing operations, further develop its AI productivity platform, and pursue strategic acquisitions. This expansion follows its January 2025 acquisition of Coda, a workspace platform that enhances AI-driven productivity tools.

Currently, Grammarly serves over 40 million users and 50,000 organizations, generating $700 million in annual revenue. CEO Shishir Mehrotra, formerly of Coda, highlighted the potential unlocked by integrating the two platforms, aiming to accelerate growth and reach more users.

This funding reflects strong investor confidence in AI-driven productivity solutions and positions Grammarly for continued innovation in the evolving market.