Latest news with #Coda
The Hindu
4 days ago
- Business
- The Hindu
Grammarly secures $1 billion from General Catalyst to build AI productivity platform
Grammarly has raised $1 billion in non-dilutive financing from General Catalyst to expand its artificial intelligence (AI) offerings, aiming to grow into a comprehensive productivity platform, the companies said on Thursday. Grammarly, known for its popular writing assistant tool, plans to use the capital to fund sales and marketing costs and strategic acquisitions. It looks to use AI to build more communication-based productivity tools and even hosts third-party tools on its platform by leveraging access to its 40 million daily users. The investment, one of the biggest out of General Catalyst's Customer Value Fund (CVF), could help late-stage tech companies like Grammarly accelerate growth by using dedicated capital to acquire new customers. By reallocating funds typically tied up in sales and marketing, Grammarly can invest more in product development. In return, General Catalyst doesn't receive an equity stake in Grammarly, but will get a capped return linked to revenue generated through using this capital. This is structured as a percentage of the revenue generated from the fund being used in customer acquisition. Founded in 2009, Grammarly has an annual revenue exceeding $700 million and is profitable. In December, Grammarly appointed Shishir Mehrotra, previously CEO of the acquired productivity platform Coda, as its new leader, signaling a push into broader AI-powered workplace tools. "As Grammarly is going through a huge transformation of going from being a what is mostly known as a single-purpose agent to being an agent platform, it just felt very important for us to be able to bet big in our product development and in M&A as well as in our growth strategies," Mehrotra said in an interview. He added said the company has an eventual goal to go public, although no imminent plans. "I'm right now just focused on making sure we're innovating with new products, growing as fast as we can. But when we feel ready, we'll go public," Mehrotra added. The dedicated growth investment, if it pays off, could also benefit the valuation of Grammarly and General Catalyst's stake in the company, as it has also been an equity investor in Grammarly's series B funding in 2017. San Francisco-based Grammarly has raised over $550 million in venture capital, according to PitchBook. It was last valued at $13 billion in 2021. General Catalyst's Customer Value Fund operates apart from the firm's main venture funds with separate limited partners, and is not included in the newly raised $8 billion fundraising the firm announced. This approach is part of a strategic evolution for the tech investor, led by CEO Hemant Taneja, as it seeks to grow beyond the traditional venture capital model, including creating innovative funding mechanisms. Its customer acquisition fund has invested in nearly 50 companies, including Lemonade and Fivetran, as it leads on growth metrics to a more predictable path to returns. "Companies like Grammarly basically have a machine where they can invest dollars in sales and marketing and generate a very consistent return," said Pranav Singhvi, Managing Director at General Catalyst, "With this wave of AI, giving Grammarly the firepower to actually go and invest could land those customers beyond the 40 million."
Time of India
4 days ago
- Business
- Time of India
Grammarly secures $1 billion from General Catalyst to build AI productivity platform
Grammarly has raised $1 billion in non-dilutive financing from General Catalyst to expand its artificial intelligence (AI) offerings, aiming to grow into a comprehensive productivity platform, the companies said on Thursday. Grammarly, known for its popular writing assistant tool, plans to use the capital to fund sales and marketing costs and strategic acquisitions. It looks to use AI to build more communication-based productivity tools and even hosts third-party tools on its platform by leveraging access to its 40 million daily users. The investment, one of the biggest out of General Catalyst's Customer Value Fund (CVF), could help late-stage tech companies like Grammarly accelerate growth by using dedicated capital to acquire new customers. By reallocating funds typically tied up in sales and marketing, Grammarly can invest more in product development. In return, General Catalyst doesn't receive an equity stake in Grammarly, but will get a capped return linked to revenue generated through using this capital. This is structured as a percentage of the revenue generated from the fund being used in customer acquisition. Founded in 2009, Grammarly has an annual revenue exceeding $700 million and is profitable. In December, Grammarly appointed Shishir Mehrotra, previously CEO of the acquired productivity platform Coda, as its new leader, signaling a push into broader AI-powered workplace tools. Live Events "As Grammarly is going through a huge transformation of going from being a what is mostly known as a single-purpose agent to being an agent platform, it just felt very important for us to be able to bet big in our product development and in M&A as well as in our growth strategies," Mehrotra said in an interview. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories He added said the company has an eventual goal to go public, although no imminent plans. "I'm right now just focused on making sure we're innovating with new products, growing as fast as we can. But when we feel ready, we'll go public," Mehrotra added. The dedicated growth investment, if it pays off, could also benefit the valuation of Grammarly and General Catalyst's stake in the company, as it has also been an equity investor in Grammarly's series B funding in 2017. San Francisco-based Grammarly has raised over $550 million in venture capital, according to PitchBook. It was last valued at $13 billion in 2021. General Catalyst's Customer Value Fund operates apart from the firm's main venture funds with separate limited partners, and is not included in the newly raised $8 billion fundraising the firm announced. This approach is part of a strategic evolution for the tech investor, led by CEO Hemant Taneja, as it seeks to grow beyond the traditional venture capital model, including creating innovative funding mechanisms. Its customer acquisition fund has invested in nearly 50 companies, including Lemonade and Fivetran, as it leads on growth metrics to a more predictable path to returns. "Companies like Grammarly basically have a machine where they can invest dollars in sales and marketing and generate a very consistent return," said Pranav Singhvi, Managing Director at General Catalyst, "With this wave of AI, giving Grammarly the firepower to actually go and invest could land those customers beyond the 40 million."
TechCrunch
4 days ago
- Business
- TechCrunch
Grammarly secures $1B in non-dilutive funding from General Catalyst
Grammarly has secured a $1 billion commitment from General Catalyst. The 14-year-old writing assistant startup will use the new funds for its sales and marketing efforts, freeing up existing capital to make strategic acquisitions. Unlike a traditional venture round, General Catalyst will not receive an equity stake in the company in return for the investment. Instead, Grammarly will repay the capital along with a fixed, capped percentage of revenue it generates from the use of General Catalyst's funds. The investment comes from General Catalyst's Customer Value Fund (CVF), a capital pool that helps late-stage startups with predictable revenue streams deploy new funding specifically to growing their businesses. CVF's alternative financing strategy essentially 'lends' capital that is secured by a company's recurring revenue. For companies like Grammarly, this form of financing is advantageous because it's non-dilutive and does not reset the company's valuation. Grammarly was valued at $13 billion in 2021, during the peak of the ZIRP era. However, the company's valuation in today's market is significantly lower, according to an investor in the company who asked to remain anonymous. Grammarly didn't immediately respond to a request for comment. In December, Grammarly acquired productivity startup Coda and appointed its CEO, Shishir Mehrotra, to lead Grammarly. The company, which is evolving into an AI productivity tool following the acquisition, has annual revenue of over $700 million. General Catalyst's Customer Value Fund has provided funding to nearly 50 companies, including insurtech Lemonade and telehealth platform Ro. CVF maintains its own distinct limited partners and was not included in the firm's recent $8 billion capital raise. Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW General Catalyst head honcho Hemant Taneja and Pranav Singhvi, co-head of CVF, talked with TechCrunch in greater length about the group's specialized financing strategy last fall.
Yahoo
5 days ago
- Business
- Yahoo
Grammarly Announces $1 Billion Growth Financing With General Catalyst
SAN FRANCISCO, May 29, 2025--(BUSINESS WIRE)--Grammarly, the trusted AI assistant for communication and productivity, today announced the closing of $1 billion in financing from General Catalyst. This underscores General Catalyst's longtime commitment to Grammarly, which has evolved into an AI productivity platform for apps and agents following the acquisition of Coda in January 2025. Grammarly will use the go-to-market investment from General Catalyst's Customer Value Fund (CVF) to scale sales and marketing and for strategic acquisitions. The new capital enables Grammarly to grow its customer base and extend the reach of its AI productivity platform. More than 40 million users rely on Grammarly daily, contributing to Grammarly's annual revenue of more than $700 million. This latest financing will enable Grammarly to further accelerate its growth through investments across product innovation, sales and marketing, and strategic acquisitions. "Integrating Coda and Grammarly has unlocked tremendous potential for how people work and communicate," said Shishir Mehrotra, Grammarly CEO. "I'm energized by the innovation happening across our teams as Grammarly has become a productivity platform serving everyone from individual students to growing businesses to large enterprises. The breadth of what we can now offer is truly compelling. With General Catalyst's continued partnership and confidence in our vision, we can scale faster and more sustainably to reach the millions of people who can benefit from our tools." "This investment represents more than just capital; we believe it's a strategic enabler for the next phase of Grammarly's growth," said Pranav Singhvi, Managing Director and Co-Head of the CVF. "We've been working with the Grammarly team for years as they became an early leader in applied AI. We are confident that this extension of our partnership will create significant long-term value and continue to drive Grammarly's ability to accelerate enterprise adoption through transformed workflows and communication across industries," said Hemant Taneja, CEO of General Catalyst. The AI Productivity Platform Grammarly powers the infrastructure that brings AI directly to users across 500,000-plus applications and websites, enabling AI agents, including Grammarly's proofreading, paraphrasing, tone suggestion, and AI detector agents, to seamlessly read, enhance, suggest, and edit content, working directly alongside users. Coda has spent the past few years perfecting Coda Docs, a powerful, flexible productivity suite, and recently introduced Coda Brain, which unlocks company knowledge and makes it actionable. Together, Grammarly and Coda are leading the shift in how AI integrates into workdays, building technology that functions like a thoughtful colleague, recognizes context, and helps people accomplish more with less effort. About Grammarly Grammarly is the trusted AI assistant for communication and productivity, helping over 40 million people and 50,000 organizations do their best work. Companies like Atlassian, Databricks, and Zoom rely on Grammarly to brainstorm, compose, and enhance communication that moves work forward. Grammarly works where you work, integrating seamlessly with over 500,000 applications and websites. Coda, the maker of powerful AI productivity tools, is now a part of Grammarly. Together, they are redefining collaboration and transforming how we get work done. Learn more at View source version on Contacts Media Contact Dolleen Cross, Communications Director, 650-784-3481 Sign in to access your portfolio
CNA
5 days ago
- Business
- CNA
Grammarly secures US$1 billion from General Catalyst to build AI productivity platform
Grammarly has raised US$1 billion in non-dilutive financing from General Catalyst to expand its artificial intelligence (AI) offerings, aiming to grow into a comprehensive productivity platform, the companies told Reuters. Grammarly, known for its popular writing assistant tool, plans to use the capital to fund sales and marketing costs and strategic acquisitions. It looks to use AI to build more communication-based productivity tools and even hosts third-party tools on its platform by leveraging access to its 40 million daily users. The investment, one of the biggest out of General Catalyst's Customer Value Fund (CVF), could help late-stage tech companies like Grammarly accelerate growth by using dedicated capital to acquire new customers. By reallocating funds typically tied up in sales and marketing, Grammarly can invest more in product development. In return, General Catalyst doesn't receive an equity stake in Grammarly, but will get a capped return linked to revenue generated through using this capital. This is structured as a percentage of the revenue generated from the fund being used in customer acquisition. Founded in 2005, Grammarly has an annual revenue exceeding US$700 million and is profitable. In December, Grammarly appointed Shishir Mehrotra, previously CEO of the acquired productivity platform Coda, as its new leader, signalling a push into broader AI-powered workplace tools. "As Grammarly is going through a huge transformation of going from being a what is mostly known as a single-purpose agent to being an agent platform, it just felt very important for us to be able to bet big in our product development and in M&A as well as in our growth strategies," Mehrotra said in an interview. He added said the company has an eventual goal to go public, although no imminent plans. "I'm right now just focused on making sure we're innovating with new products, growing as fast as we can. But when we feel ready, we'll go public," Mehrotra added. The dedicated growth investment, if it pays off, could also benefit the valuation of Grammarly and General Catalyst's stake in the company, as it has also been an equity investor in Grammarly's series B funding in 2017. San Francisco-based Grammarly has raised over US$550 million in venture capital, according to PitchBook. It was last valued at US$13 billion in 2021. General Catalyst's Customer Value Fund operates by drawing capital from the firm's main investment fund, including a newly raised US$8 billion. This approach is part of a strategic evolution for the investment firm, led by CEO Hemant Taneja, as it seeks to grow beyond the traditional venture capital model, including creating innovative funding mechanisms. Its customer acquisition fund has invested in nearly 50 companies, including Lemonade and Fivetran, as it leads on growth metrics to a more predictable path to returns. "Companies like Grammarly basically have a machine where they can invest dollars in sales and marketing and generate a very consistent return," said Pranav Singhvi, Managing Director at General Catalyst, "With this wave of AI, giving Grammarly the firepower to actually go and invest could land those customers beyond the 40 million."
