The firm has raised $1 billion from General Catalyst’s Customer Value Fund to transform from a writing assistant into an AI-powered productivity platform.
Grammarly has secured $1 billion in funding from General Catalyst’s Customer Value Fund as it accelerates plans to become a full-scale AI productivity platform. The deal, announced on 30 May, marks a major shift for the company, which is best known for its writing assistant but now aims to integrate a broader suite of productivity tools.
“This is a huge transformation,” said CEO Shishir Mehrotra. “Grammarly is going from being what is mostly known as a single-purpose agent to being an agent platform.” The move comes five months after Grammarly acquired Coda, a collaborative document and AI productivity startup, where Mehrotra was previously CEO.
The new funding is non-dilutive – meaning General Catalyst will not take equity but will receive a capped return based on revenue generated using the funds. That structure reflects strong investor confidence in Grammarly’s future, particularly given its scale. The company has more than 40 million daily users and generates over $700 million in annual revenue.
Pranav Singhvi, managing director at General Catalyst, called Grammarly a leader in applied AI and said the firm had “believed in this company for a long time.” He said the funding would help drive enterprise adoption of Grammarly’s platform, allowing businesses to improve communication and workflows.
Grammarly’s expansion comes amid a wider rush by technology companies to embed AI more deeply into core products. Tools powered by large language models are seeing rapid adoption, and companies that can combine this technology with real-world utility stand to benefit most. Industry observers point out that attracting top AI talent is now a critical differentiator.
Grammarly’s ambitions go far beyond improving grammar and spelling. Under Mehrotra, the company is building out a platform that supports ideation, composition and editing, an ecosystem that could eventually rival broader workplace tools. While the company has no immediate plans to go public, the latest funding round suggests it is gearing up for further growth.
Grammarly’s repositioning could reshape how digital communication tools are defined. Its evolution from a writing assistant to a multi-agent AI platform is one of the clearest examples of how generative AI is changing the software landscape, blurring the line between productivity tool and creative partner.
Source: Noah Wire Services
- https://americanbazaaronline.com/2025/06/02/grammarly-secures-1-billion-in-funding-amid-shift-towards-ai-463247/ – Please view link – unable to able to access data
- https://www.reuters.com/business/grammarly-secures-1-billion-general-catalyst-build-ai-productivity-platform-2025-05-29/ – Grammarly has secured $1 billion in non-dilutive financing from General Catalyst to support its transformation into a comprehensive AI-driven productivity platform. The funds will be directed toward sales, marketing, strategic acquisitions, and product development. Unlike equity financing, General Catalyst will receive a capped return tied to revenue from capital usage without taking a stake in the company. Grammarly, widely recognized for its writing assistant, aims to integrate more communication and productivity tools and host third-party applications, capitalizing on its 40 million daily users. ([reuters.com](https://www.reuters.com/business/grammarly-secures-1-billion-general-catalyst-build-ai-productivity-platform-2025-05-29/?utm_source=openai))
- https://www.grammarly.com/blog/company/grammarly-to-acquire-coda/ – Grammarly announced its intent to acquire productivity platform Coda, with Coda’s CEO and Co-Founder Shishir Mehrotra set to become the new CEO of Grammarly. The addition of Coda’s flexible and powerful AI tools aims to transform Grammarly into an AI productivity platform for apps and agents, enabling customers to unlock access to company knowledge, generative AI chat, a productivity suite, and capable, trusted AI agents to work smarter and faster. ([grammarly.com](https://www.grammarly.com/blog/company/grammarly-to-acquire-coda/?utm_source=openai))
- https://www.axios.com/2024/12/18/grammarly-is-buying-coda-to-expand-ai-offerings – Grammarly, a writing assistant valued at $13 billion, has agreed to acquire productivity startup Coda. This acquisition aims to expand Grammarly’s AI offerings and enhance its productivity capabilities. Coda’s CEO, Shishir Mehrotra, will take on the CEO role at Grammarly. The deal, an all-stock transaction based on the companies’ most recent valuations, will result in Grammarly shareholders owning approximately 90% of the combined entity, considering Coda’s last valuation at $1.3 billion. ([axios.com](https://www.axios.com/2024/12/18/grammarly-is-buying-coda-to-expand-ai-offerings?utm_source=openai))
- https://www.axios.com/newsletters/axios-pro-rata-f13ae0ec-924e-4c24-a444-c87640d4ddbd – Mary Meeker has released her first Trends report since 2019, focusing on the rapid global rise and transformative impact of AI technologies. In an interview, Meeker highlights the unprecedented user growth of ChatGPT, particularly outside the U.S., and credits Microsoft’s involvement for accelerating OpenAI’s success. While OpenAI leads in consumer AI, Meeker notes intense competition and emphasizes the importance of attracting top developer talent for long-term success. She also critiques recent U.S. immigration policy shifts that may hinder innovation. Separately, significant venture funding was announced, including $1 billion for Grammarly and $350 million for ClickHouse. ([axios.com](https://www.axios.com/newsletters/axios-pro-rata-f13ae0ec-924e-4c24-a444-c87640d4ddbd?utm_source=openai))
- https://www.businesswire.com/news/home/20240829623867/en/Codeium-Reaches-1.25B-Valuation-with-150M-Series-C-Funding-Led-by-General-Catalyst – Codeium, an AI-powered code acceleration platform, announced it has secured $150 million in Series C funding, raising the company’s valuation to $1.25 billion and bringing the startup to Unicorn status in less than two years from inception. The round was led by General Catalyst, with continued support from existing investors Kleiner Perkins and Greenoaks. Codeium’s customer-driven approach has led to solutions that work in any environment, IDE, or SCM, with broader language support than anyone else. ([businesswire.com](https://www.businesswire.com/news/home/20240829623867/en/Codeium-Reaches-1.25B-Valuation-with-150M-Series-C-Funding-Led-by-General-Catalyst?utm_source=openai))
- https://www.businesswire.com/news/home/20211118005487/en/Grammarly-Reaches-13B-Valuation-With-New-Funding-Round-to-Accelerate-Communication-Assistance-Market-Leadership – Grammarly, the company powering effective communication for over 30,000 teams and 30 million people daily, announced over $200 million in funding at a $13B valuation from new investors Baillie Gifford and funds and accounts managed by BlackRock, among others. With this latest round, Grammarly will accelerate product innovation and team growth to transform how individuals and organizations around the world communicate. ([businesswire.com](https://www.businesswire.com/news/home/20211118005487/en/Grammarly-Reaches-13B-Valuation-With-New-Funding-Round-to-Accelerate-Communication-Assistance-Market-Leadership?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative reports on Grammarly’s $1 billion funding from General Catalyst’s Customer Value Fund, announced on May 30, 2025. This aligns with a Reuters report published on May 29, 2025, confirming the funding details. ([reuters.com](https://www.reuters.com/business/grammarly-secures-1-billion-general-catalyst-build-ai-productivity-platform-2025-05-29/?utm_source=openai)) The American Bazaar’s article was published on June 2, 2025, indicating timely reporting. The narrative does not appear to be recycled or republished content. The use of a press release as a source typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The article includes updated data and does not recycle older material. No similar content was found published more than 7 days earlier.
Quotes check
Score:
8
Notes:
The narrative includes direct quotes from CEO Shishir Mehrotra and Pranav Singhvi, managing director at General Catalyst’s Customer Value Fund. The earliest known usage of these quotes is in the Reuters report published on May 29, 2025. ([reuters.com](https://www.reuters.com/business/grammarly-secures-1-billion-general-catalyst-build-ai-productivity-platform-2025-05-29/?utm_source=openai)) The quotes are consistent across sources, with no variations in wording. No earlier instances of these quotes were found, suggesting the content is original or exclusive.
Source reliability
Score:
6
Notes:
The narrative originates from The American Bazaar, a publication based in Germantown, MD. While it provides timely reporting, the publication’s reputation and editorial standards are not widely recognized, which may affect the reliability of the information. The narrative does not mention any unverifiable entities or individuals.
Plausability check
Score:
9
Notes:
The narrative’s claims about Grammarly’s $1 billion funding and strategic shift towards AI are corroborated by the Reuters report published on May 29, 2025. ([reuters.com](https://www.reuters.com/business/grammarly-secures-1-billion-general-catalyst-build-ai-productivity-platform-2025-05-29/?utm_source=openai)) The reported figures, such as Grammarly’s daily user base exceeding 40 million and annual revenue over $700 million, align with previously reported data. The narrative’s language and tone are consistent with typical corporate communications, and there are no signs of excessive or off-topic detail. The structure and tone are appropriate for the subject matter.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative provides timely and consistent reporting on Grammarly’s $1 billion funding and strategic shift towards AI, with corroboration from reputable sources. However, the source’s reliability is moderate due to the publication’s limited recognition. Overall, the narrative appears credible, but the source’s reliability warrants a medium confidence level.
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