Will Grammarly’s $1 Billion Fuel the Future of AI Productivity?

SAN FRANCISCO, May 30, 2025 - Grammarly, the AI-powered communication and productivity assistant, has secured $1 billion in non-dilutive financing from General Catalyst’s Customer Value Fund to accelerate its evolution into a comprehensive AI productivity platform. This landmark investment, announced today, follows Grammarly’s acquisition of Coda in January 2025 and aims to scale its operations, enhance its AI capabilities, and expand its global reach.

With over 40 million daily active users and $700 million in annual revenue, Grammarly is poised to redefine workplace productivity by integrating Coda’s collaborative tools with its advanced AI writing assistance.

Strategic $1 Billion Investment from General Catalyst

The $1 billion financing from General Catalyst’s Customer Value Fund represents a non-dilutive approach, allowing Grammarly to maintain ownership control while redirecting resources from sales and marketing to product innovation. Under this unique structure, General Catalyst assumes financial risk if growth targets are not met, ensuring Grammarly can focus on strategic priorities. The funds will support aggressive scaling of sales and marketing, pursuit of additional acquisitions, and expansion of Grammarly’s customer base, which already includes 96% of Fortune 500 companies.

Recent industry data highlights Grammarly’s strong financial position, with 80% gross margins and a 97% annual retention rate, positioning it to leverage this capital to compete with AI giants like Microsoft and Google in the productivity space.

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Coda Acquisition Enhances AI-Native Platform

Grammarly’s acquisition of Coda in January 2025 marks a pivotal step toward building an AI-native productivity platform. Under the leadership of Shishir Mehrotra, former Coda CEO and now Grammarly’s CEO, the company is integrating Coda Brain’s knowledge capabilities to enhance its AI assistant. This allows seamless, permission-aware connections across workplace tools like email and CRM systems.

While both Grammarly and Coda continue to operate independently, the long-term vision is a unified platform combining Grammarly’s AI writing expertise with Coda’s flexible document and collaboration features. This integration is already gaining traction, with a 25% increase in enterprise adoption reported since the acquisition, positioning Grammarly to serve teams at companies like Figma and DoorDash more effectively.

Did You Know?
Grammarly’s AI processes over 1 trillion words annually, helping users across 500,000 applications improve communication and productivity in real time.

Explosive Growth to 40 Million Daily Users

Grammarly’s user base has surged from 1 million daily active users in 2015 to 40 million in 2025, reflecting a remarkable growth trajectory. Key milestones include reaching 7 million users in 2016, 15 million by 2018, 20 million by 2019, and stabilizing at 30 million from 2020 to 2023 before climbing to its current peak. The platform serves 50,000 organizations worldwide, with the 25-34 age group comprising 30% of its user base, spanning industries like marketing, education, and IT.

Grammarly’s robust metrics, including $700 million in annual revenue and a 97% retention rate, underscore its market strength. Recent data indicates a 20% increase in platform usage since the Coda acquisition, driven by enhanced AI features and enterprise adoption.