Ukrainian decacorn Grammarly raises $1 billion from General Catalyst

AI productivity assistant Grammarly has raised $1 billion financing from General Catalyst. Founded in 2009 in Ukraine, Grammarly's funding has grown to over $1.4 billion. Grammarly is considered a decacorn, a privately held startup valued at over $10 billion. The company continues to be profitable, generating annual revenues surpassing $700 million.

More than 40 million users rely on Grammarly daily, contributing to Grammarly’s annual revenue of more than $700 million.

Grammarly powers the infrastructure that brings AI directly to users across 500,000-plus applications and websites, enabling AI agents, including proofreading, paraphrasing, tone suggestion, and AI detector agents, to seamlessly read, enhance, suggest, and edit content, working directly alongside users.

Grammarly acquired business productivity and AI platform Coda in January this year, alongside announcing Coda’s founder Shishir Mehrotra, as new CEO of Grammarly.

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 recognises context, and helps people accomplish more with less effort.

“Integrating Coda and Grammarly has unlocked tremendous potential for how people work and communicate,” said Shishir Mehrotra, Grammarly CEO.

“I’m energised 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.

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 to grow its customer base and extend the reach of its AI productivity platform.