Grammarly raises $1 billion to expand sales, marketing; CEO Mehrotra says, 'The future looks bright'

India-origin CEO-led Grammarly has raised $1 billion in non-dilutive financing from existing investor General Catalyst, marking one of the largest late-stage capital infusions in the AI productivity space this year. 

The funding comes months after Grammarly acquired Coda, a collaborative document platform, expanding its reach beyond writing assistance into enterprise productivity and workflow tools. The latest round was backed by General Catalyst’s Customer Value Fund, which focuses on go-to-market growth.

Grammarly said the fresh capital will be used to scale sales and marketing and pursue strategic acquisitions. With over 40 million daily users and more than $700 million in annual revenue, the company is positioning itself as a horizontal AI platform operating across apps, agents, and enterprise infrastructure.

Shishir Mehrotra, Grammarly’s chief executive, said the integration of Coda had broadened Grammarly’s role from a writing assistant into a comprehensive productivity suite.

"Grammarly has become a productivity platform serving everyone from individual students to growing businesses to large enterprises," Mehrotra said.

I'm excited to announce that @Grammarly has closed $1 billion in financing from General Catalyst! 🚀 Since integrating with @coda_hq earlier this year, we've evolved into an AI productivity platform serving millions daily. This investment will help us accelerate our growth. The…

— Shishir (@shishirmehrotra) May 29, 2025

The company claims that its flagship tools—including AI agents that assist with proofreading, paraphrasing, tone adjustment, and content detection—now work across over 500,000 applications and websites. Grammarly has also inherited Coda’s internal productivity tools, including Coda Docs and Coda Brain, the latter aimed at making company knowledge easily accessible and actionable.

The investment is expected to help Grammarly accelerate enterprise adoption by embedding AI-driven enhancements into day-to-day workflows across industries.

Pranav Singhvi, managing director at General Catalyst, described the deal as a “strategic enabler,” while the firm's CEO Hemant Taneja noted the firm’s years-long partnership with Grammarly and reiterated confidence in its enterprise-focused AI roadmap.

"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,” Taneja added.

The financing comes at a time when AI infrastructure firms are pushing deeper into productivity suites and workflow automation, challenging incumbents like Microsoft, Google, and Notion.