Formerly known as a grammar verifier who trusts students and professionals, Grammarly now exercises his claim as a main actor in the future of work. The Ukrainian unicorn founded a non-dilutive financing agreement of $ 1 billion in the long-standing general catalyst for the donor, marking a significant pivot in its evolution of a writing assistant to a large-scale AI productivity platform.
Unlike traditional financing cycles, this capital injection does not dilute Grammarly’s property structure. Instead, it comes from the General Catalyst Customer Value Fund (CVF), a financing model that links reimbursement to income generated from new customers. If these gains fail to materialize, grammar owes nothing – the general catalyst takes the loss.
The agreement arrives at a central time for Grammarly, which began as a tool for improving writing and now offers an increasing ecosystem of agents fueled by the AI integrated between emails, documents, company software and websites. With this expansion, the company based in San Francisco aims to become a smart spine for the way people work, rather than the way they write.
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Founded in 2009 by Ukrainian entrepreneurs Alex Shevchenko, Max Lytvyn and Dmytro Lider, Grammarly has initially focused on education, offering grammar and style suggestions to help users more clearly write. Its true escape occurred when it adopted a freemium model and integrated its service between browsers, mobile applications and office computers, allowing it to reach millions beyond the academic sphere.
Today, Grammarly takes care of more than 40 million users and 50,000 organizations. Its AI now helps brainstorming, tone adjustments and content magazines, including detection of Materials generated by AI, perfectly operating on more than 500,000 platforms and tools.
The recent acquisition of Coda, a document and collaboration platform, has further expanded the scope of Grammarly. Coda’s former CEO, Shishir Mehrotra, came into the role of CEO at Grammarly in December 2024, inaugurating a new phase of leadership and strategy. With this merger, Grammarly now combines its communication intelligence with the Coda business quality documents system, transforming static documents into live work areas and connected to data.
This transformation has put grammar at the heart of a new class of a-native platforms-not only tools, but intelligent systems that include the context and provide proactive assistance. Coda Brain, the AI engine at the Coda document center, fits into the internal data of the company while preserving access authorizations. In combination with the own agents of Grammarly AI, the platform now helps teams organize knowledge, surfaceing information and performing tasks with minimal manual effort.
Grammarly’s role is no longer limited to rereading. Its technology is now integrated into daily work flows of large companies such as Atlassian, Databricks and Zoom. With more than $ 700 million in annual income, 80% gross margins and an annual retention rate of 97% among paid users, the company remains profitable while continuing to evolve.
General Catalyst, which raised an $ 8 billion fund in October 2024, identified grammar as a strategic pillar in its wider IA thrust. The company’s investment strategy extends over sectors such as defense, fintech, climate and health care, but Grammarly’s evolution in an AI productivity engine has become central to its IA thesis.
With the new funding, Grammarly plans to expand its global marketing and sales efforts, targeting new sectors and regions. It also envisages additional acquisitions to strengthen the capacity of products, deepen integrations and expand its scope. Internally, the company continues to invest in AI innovation, refining its agents to work on each layer of corporate software – from Wikis and CRMS to slides and messaging applications.
The increase in Grammarly reflects a broader trend in the venture capital landscape, where artificial intelligence continues to dominate funding. In the first quarter of 2025 only, AI startups attracted $ 59.6 billion in skills – more than half of the total capital deployed during the period. Agreement agreements like Grammarly represented 61% of this activity.
This wave of financing occurs even if competition intensifies from generatic Giants of AI such as Chatgpt and Microsoft Copilot. These rivals slowed down Grammarly’s growth rate but did not have it eliminated its pedestal as a market leader.
By deepening its capacities and infrastructure, Grammarly is preparing for a future where AI attests not only, but fundamentally shapes the way the teams collaborate and do the work. The company also builds an open ecosystem which will allow third-party developers to connect to its platform, integrating it more into the corporate fabric.
Shishir Mehrotra, who now directs the next grammar chapter, said that the combined force of grammar and Coda has unlocked new possibilities on how people work and communicate.
“I am energized by the innovation that happens in our teams,” he said. “Grammar has become a productivity platform serving everyone, from individual students to growing businesses for large companies. The extent of what we can now offer is really convincing. ”
