Grammerly Raises $1 Billion from General Catalyst to Expand and Acquire More Companies
Grammerly, the San Francisco-based writing and productivity platform, secures major funding from General Catalyst to grow its business and pursue acquisitions.
Grammerly Secures $1 Billion in New Funding
Grammerly has raised $1 billion from General Catalyst, marking a major investment aimed at scaling the company’s growth. The funding comes from General Catalyst’s Customer Value Fund and will be used to expand sales, marketing, and make strategic acquisitions.
Over 40 Million Users and Rapid Revenue Growth
The company, based in San Francisco, reports having more than 40 million users and generating over $700 million in annual revenue.
Grammerly’s Growth Through Acquisition
Earlier this year, Grammerly acquired Coda, a move that also brought in Coda’s CEO to lead the combined business. This acquisition helped Grammerly move beyond writing assistance to become a broader productivity platform for tools and digital agents.
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Ongoing Support from General Catalyst
This isn’t General Catalyst’s first investment in Grammerly. The firm previously took part in a $110 million funding round in 2017 and contributed $90 million in 2019. In October, General Catalyst raised $8 billion to invest in key sectors like AI, healthcare, defense, and fintech.
AI Continues to Lead Venture Investment Trends
Grammerly’s latest funding reflects the strong investor interest in AI-powered companies. Nearly half of all U.S. venture capital over the past year went to AI-related startups, with later-stage deals accounting for the largest portion. Globally, AI attracted $59.6 billion in the first quarter alone, making it the top-funded sector.