Grammarly Secures $1B in Non-Dilutive Funding from General Catalyst to Accelerate Growth and AI Expansion

Grammarly has announced a $1 billion financing agreement with General Catalyst, aimed at accelerating its go-to-market strategy and unlocking capital for future acquisitions. The funding, drawn from General Catalyst’s Customer Value Fund (CVF), provides non-dilutive capital that Grammarly will repay through a capped percentage of revenue generated from its use.

Unlike traditional equity deals, the agreement preserves Grammarly’s ownership structure and valuation. The AI writing assistant, last valued at $13 billion in 2021, will use the funds to expand sales, marketing, and AI-driven product development.

Following its recent acquisition of Coda, Grammarly appointed Shishir Mehrotra as CEO. The company now reports annual revenue exceeding $700 million as it evolves into a broader AI productivity platform.