The announcement came about five months after Grammarly acquired artificial intelligence productivity tool maker Coda, integrated the two companies and evolved into an AI productivity platform for apps and agents, the company said in a Thursday (May 29) press release.
“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,” Grammarly CEO Shishir Mehrotra said in the release.
Grammarly’s AI assistant helps users brainstorm, compose and enhance communication, according to the release. Its AI agents proofread, paraphrase and suggest tone.
The AI assistant has more than 40 million users, and the company earns over $700 million in annual revenue, per the release.
Pranav Singhvi, managing director and co-head of General Catalyst’s CVF, said in the release that the investment is “a strategic enabler for the next phase of Grammarly’s growth.”
“We’ve been working with the Grammarly team for years as they became an early leader in applied AI,” Singhvi said. “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.”
When Grammarly announced its intention to acquire Coda in December, it said in a press release that Mehrotra, who was Coda’s CEO and co-founder, would become Grammarly’s CEO and that the integration of the two companies would turn Grammarly into an AI productivity platform for apps and agents.
“For the past 15 years, Grammarly has been building an AI superhighway with the capacity and expertise to do so much more than writing assistance for our customers,” Grammarly co-founder Alex Shevchenko said in the December press release. “The acquisition of Coda is a big step toward achieving our vision of a world where humans and AI work together everywhere work happens.”
There’s a growing number of AI tools designed to support enterprise writing, making content creation, editing and management more efficient, PYMNTS reported in November.
For example, Grammarly Business offers real-time grammar, style and tone adjustments that align with company standards, helping teams maintain consistency across documents.
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