Grammarly Raises a Billion in Financing Tied to Revenue Growth
Known as much for its flagship write-assist offering as for ubiquitous advertising, the Grammarly Editor platform raised USD 1bn from General Catalyst ‘s Customer Value Fund. The funds will operate like a loan or credit line with capped returns tied to revenue, rather than an equity stake. The financing, announced on X on May 29, 2025, by the company’s current CEO, Shishir Mehrotra, is structured in a way that allows General Catalyst to increase their investment in Grammarly without diluting ownership by issuing new shares to other investors — according to Reuters . The Reuters article also said the capital is intended to support and accelerate Grammarly’s growth through increased spending on sales, marketing, and strategic acquisitions. The investment is also expected to allow 16-year-old Grammarly to reallocate funds towards product development, particularly expanding its AI-driven offerings with communication-centric tools and integrated external a...