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4w ago

Grammarly Secures $1 Billion in Non-Dilutive Financing to Accelerate AI Productivity Platform

General Catalyst’s Customer Value Fund provided capital for Grammarly’s transition from writing assistant to AI-driven productivity suite.

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song/File Photo
Grammarly

Overview

  • The deal is structured as non-dilutive financing that delivers General Catalyst a capped return tied to revenue rather than equity in Grammarly.
  • Grammarly plans to deploy the funds to expand its sales and marketing footprint and pursue strategic acquisitions.
  • General Catalyst’s Customer Value Fund has now backed nearly 50 late-stage tech companies with similar revenue-based financing models.
  • In January, Grammarly acquired Coda and appointed its CEO Shishir Mehrotra to lead its push into broader AI-powered workplace tools.
  • With over 40 million daily users and more than $700 million in annual revenue, Grammarly remains profitable and continues preparing for a future IPO.