Writing assistant platform Grammarly has landed a massive $1 billion in nondilutive financing from General Catalyst.
Rather than giving up equity, Grammarly will repay the funds via a capped percentage of future revenue — a strategic move that allows it to expand without resetting its valuation.
Funding structure tailored for predictable revenue
The deal was structured through General Catalyst’s Customer Value Fund (CVF), which specializes in revenue-based financing for later-stage companies with strong, recurring income. This approach provides capital in exchange for a percentage of revenue instead of equity, helping companies like Grammarly avoid dilution while accelerating their growth plans.
The firm plans to use the fresh capital to ramp up sales, marketing, and potential strategic acquisitions — all while preserving its prior valuation, which peaked at $13 billion in 2021. Though that figure has since dipped in today’s market, the company continues to bring in over $700 million annually.
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Coda acquisition and leadership shift
This announcement follows Grammarly’s December acquisition of productivity startup Coda. Along with the deal, Coda’s CEO Shishir Mehrotra stepped in to lead Grammarly, guiding its evolution from grammar correction to broader AI-powered productivity solutions.
CVF’s growing portfolio
The writing assistent joins nearly 50 companies backed by General Catalyst’s CVF, including Lemonade and Ro. CVF operates independently from General Catalyst’s main $8 billion fund and is designed to support scaling companies through creative financial strategies.
With this funding, the company doubles down on growth — all without giving up control.
