Grammarly is doubling down on its long-term bet as it continues to truck through a rough valuation correction. Today, the company’s valuation is a far cry from the record $13 billion it attained in 2021. The new funding will increase Grammarly’s ability to sell and market the service. Further, it will enable the company to make more disciplined strategic acquisitions, all without risking its core capital.
Last fall, Hemant Taneja, the managing director of General Catalyst, laid out their deep-tech financing approach in a conversation with TechCrunch. He was accompanied by Pranav Singhvi, the co-head of the firm’s $1 billion Catalyst Ventures Fund. This non-dilutive funding will propel Grammarly’s growth in the research and development space. It enables the company to prop up its valuation, which is key as it seeks to lock down its market leading position.
After 14 years of organic growth since its founding, Grammarly has reached the status of a household name and the premier writing assistant. The company made waves this fall by buying productivity startup Coda, installing Coda’s CEO, Shishir Mehrotra, to run the day-to-day operations of Grammarly. We look forward to seeing how this strategic acquisition will complement Grammarly’s product offering and foster even greater innovation within its platform.
General Catalyst’s new funding gives Grammarly the financial firepower to fill its gas tank. This investment will really lean into enhancing sales and marketing efforts. With the writing assistant market constantly advancing with new technology, these developments are very important for staying ahead of the competition and bringing in new users.
Marina Temkin, a venture capital and startups reporter at TechCrunch, has been covering developments in the tech industry, including this latest financing round for Grammarly. Temkin brings her expertise as a former financial analyst and CFA charterholder to her reporting, providing insights into the implications of such investments in the startup ecosystem.
