Grammarly, the leading AI driven writing assistant used by over 40 million people daily, has raised $1 billion in non-dilutive growth capital from General Catalyst.
This unique funding model allows Grammarly to accelerate its expansion while maintaining full ownership, repaying the investment through a capped return tied to the company’s revenue growth rather than giving up equity.
From Writing Assistant to Comprehensive AI Productivity Suite
Founded in 2009, Grammarly revolutionized the way millions communicate by providing real-time grammar and style corrections.
Now, with this significant investment, the company is transforming itself from a specialized writing tool into an all-encompassing AI productivity platform.
Grammarly plans to integrate a wide range of workplace tools and third-party apps to streamline communication, collaboration, and workflow automation for businesses and individual users alike.
Strategic Moves Highlight Vision for Growth
Grammarly’s recent acquisition of Coda, a flexible document and productivity platform, signals its ambition to broaden its product ecosystem.
Additionally, the appointment of Shishir Mehrotra, former CEO of Coda and ex executive at YouTube, as Grammarly’s new CEO, underscores a strategic shift towards building a multi faceted AI platform that goes beyond writing assistance.
Market Leadership and Financial Strength
As of 2025, Grammarly boasts more than 40 million daily active users and annual revenues exceeding $700 million.
The company was last valued at approximately $13 billion in 2021 and has attracted over $550 million in venture capital funding prior to this round.
This new injection of capital will support continued investment in product innovation, sales expansion, marketing efforts, and strategic acquisitions.
Non-Dilutive Financing: A New Growth Model
Unlike traditional equity financing, Grammarly’s $1 billion funding from General Catalyst’s Customer Value Fund (CVF) is structured as non dilutive debt.
This means Grammarly can access substantial growth capital without diluting existing shareholders’ stakes, repaying the investment through revenue based returns capped at a predetermined level.
This approach reflects growing investor interest in supporting mature tech companies with stable revenue streams while avoiding ownership dilution.
The Road Ahead: Building the Future of Work
Grammarly’s leadership envisions a future where their AI platform serves as the backbone for smarter, more effective communication and productivity across all industries.
By integrating AI-powered tools that go beyond grammar correction such as real time collaboration, data insights, and workflow automation Grammarly aims to become indispensable to professionals worldwide.
