Grammarly introduced $1 billion in financing from General Catalyst’s Customer Value Fund (CVF), saying it’ll use the financing for product innovation, scaling its gross sales and advertising and marketing, and making strategic acquisitions.
The announcement took place 5 months after Grammarly acquired synthetic intelligence productiveness device maker Coda, built-in the 2 firms and advanced into an AI productiveness platform for apps and brokers, the corporate stated in a Thursday (Could 29) press release.
“With Normal Catalyst’s continued partnership and confidence in our imaginative and prescient, we are able to scale quicker and extra sustainably to succeed in the thousands and thousands of people that can profit from our instruments,” Grammarly CEO Shishir Mehrotra stated within the launch.
Grammarly’s AI assistant helps customers brainstorm, compose and improve communication, in line with the discharge. Its AI brokers proofread, paraphrase and recommend tone.
The AI assistant has greater than 40 million customers, and the corporate earns over $700 million in annual income, per the discharge.
Pranav Singhvi, managing director and co-head of Normal Catalyst’s CVF, stated within the launch that the funding is “a strategic enabler for the following section of Grammarly’s development.”
“We’ve been working with the Grammarly staff for years as they turned an early chief in utilized AI,” Singhvi stated. “We’re assured that this extension of our partnership will create important long-term worth and proceed to drive Grammarly’s capability to speed up enterprise adoption by way of remodeled workflows and communication throughout industries.”
When Grammarly introduced its intention to acquire Coda in December, it stated in a press launch that Mehrotra, who was Coda’s CEO and co-founder, would change into Grammarly’s CEO and that the combination of the 2 firms would flip Grammarly into an AI productiveness platform for apps and brokers.
“For the previous 15 years, Grammarly has been constructing an AI superhighway with the capability and experience to take action rather more than writing help for our clients,” Grammarly co-founder Alex Shevchenko stated within the December press launch. “The acquisition of Coda is a giant step towards reaching our imaginative and prescient of a world the place people and AI work collectively all over the place work occurs.”
There’s a rising variety of AI tools designed to help enterprise writing, making content material creation, enhancing and administration extra environment friendly, PYMNTS reported in November.
For instance, Grammarly Business gives real-time grammar, model and tone changes that align with firm requirements, serving to groups keep consistency throughout paperwork.
For all PYMNTS AI protection, subscribe to the each day AI Newsletter.
