Grammarly has raised $1 billion in go-to-market funding from investment firm General Catalyst’s Customer Value Fund (CVF) to expand its AI offerings, aiming to become a comprehensive productivity platform.
Grammarly has raised $1 billion in go-to-market funding from investment firm General Catalyst’s Customer Value Fund (CVF) to expand its AI offerings, aiming to become a comprehensive productivity platform.
This is one of General Catalyst's largest investments. The venture capital firm does not receive any shares in Grammarly, but will have a fixed share of the revenue associated with the use of these investments, Reuters writes .
Grammarly plans to use the capital to scale sales and marketing, as well as make strategic acquisitions. The new capital will also allow Grammarly to expand its customer base and increase product reach.
The company plans to use artificial intelligence to create more productivity tools based on communication, and even host third-party tools on its platform, thereby leveraging its access to its 40 million daily users.
“As Grammarly undergoes a massive transformation from a so-called universal agent to an agent platform, it was critical for us to be able to make big bets on product development, M&A, and growth strategies,” said Shishir Merotra, former CEO of Coda, which Grammarly acquired in December. He led the two combined companies as CEO.
Grammarly is a Ukrainian-based company founded in 2009. It has annual revenue of over $700 million and is profitable. In 2021, the company was valued at $13 billion.
