Home / Grammarly News: $1B Funding, AI Updates, & New CEO

Grammarly News: $1B Funding, AI Updates, & New CEO

By: Jasmin Espinas
May 29, 2025

Grammarly, best known for its AI writing assistant, has grown beyond grammar checks. Its tools are now embedded across personal, academic, and enterprise communication. In recent Grammarly news, the company has secured $1 billion in financing from General Catalyst.

This update also follows Grammarly’s feature updates for Authorship, the company’s recent Coda acquisition, and its new CEO.

Latest Grammarly News: Grammarly Secures $1 Billion to Expand AI Productivity Tools

Grammarly has secured $1 billion in non-dilutive financing from General Catalyst on May 29. This move supports the company’s expansion into AI-driven productivity software.

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. https://t.co/y4rg9cy371

— Reuters Legal (@ReutersLegal) May 29, 2025

The investment, one of the largest from General Catalyst’s Customer Value Fund, allows Grammarly to reallocate spending traditionally tied to marketing and sales.

This shift frees up capital for product development and targeted acquisitions that can broaden its capabilities beyond writing assistance.

In this Grammarly news, the company outlines a clear path forward: enhance AI-powered communication tools while opening the platform to external tools that can serve its over 40 million daily users.

The deal structure also gives General Catalyst a capped return based on revenue earned from the use of these funds rather than an equity stake.

“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, one of General Catalyst’s managing directors.

Singvhi added, “With this wave of AI, giving Grammarly the firepower to actually go and invest could land those customers beyond the 40 million.”

Meanwhile, CEO Sishir Mehrotra said Grammarly has long-term plans to go public. However, he emphasized that the current focus is on building aggressively and scaling fast.

Grammarly News: Major Feature Updates for Authorship

Grammarly Authorship, introduced in 2024, addressed growing concerns around AI-generated content in academic settings. Unlike detectors that attempt to reverse-engineer authorship, this tool captures input activity during the writing process.

Introducing: Grammarly Authorship! 💥

This feature automatically categorizes text sources as you write, giving you the confidence to turn in your most authentic, transparent work in today’s AI era.

Coming soon ➡️ https://t.co/P0qMqZxwaw pic.twitter.com/pcfJ1PnZ8N

— Grammarly (@Grammarly) August 14, 2024

Authorship categorizes each portion of text as user-typed, AI-generated, or externally copied. This gives students a clear record of how their work was assembled.

Additionally, it provides educators with transparent attribution.

In this round of Grammarly news, Grammarly has rolled out the following April 2025 feature upgrades to expand Authorship’s functionality.

Authorship Tracking in Microsoft Word
- Available through the Grammarly desktop app, the Microsoft Word Authorship Tracking assigns attribution to content copied from local apps or AI tools.
Speedy Citations
- Users on Pro and Education plans can access one-click, pre-formatted citations directly in the Authorship report for any external sources used.
AI and Plagiarism Detection in Reports
- Additional in-line flags appear within Authorship reports, offering backup checks in case any typed text resembles AI-generated or improperly cited content.
Authorship Analytics for Education Accounts
- Admins can now view data on the percentage of text typed, copied, or generated by AI, along with the top 10 content sources.
  - Note: Analytics become available once at least five users enable the Authorship tracking.

Grammarly Acquires Coda and Appoints Shishir Mehrotra as New CEO

Grammarly announced its acquisition of Coda, a productivity platform known for its AI-enhanced workspaces, and the appointment of Shishir Mehrota as its new CEO on December 17, 2024.

Integrating Coda’s AI capabilities aims to accelerate Grammarly’s platform evolution.

At the same time, the goal is to create a unified experience where users can access organizational knowledge, run AI-driven chats, and use a connected suite of tools to complete work faster.

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A post shared by Grammarly (@grammarly)

On the other hand, Mehrotra’s appointment brings over 25 years of product and platform leadership. He co-founded and scaled Coda to millions of users and tens of thousands of active teams.

Before his tenure at Coda, he led product and engineering at YouTube, helping turn it into one of Google’s largest businesses. Following the acquisition, he will also serve on Grammarly’s board.

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Conclusion

Grammarly is repositioning itself as a broader AI productivity platform. The company’s recent commitments reflect a shift toward scaling, more intelligent tools, and staying competitive in the enterprise software space.

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