Grammarly Inc., best known for its artificial intelligence writing productivity platform, today announced it has raised $1 billion in nondilutive financing from General Catalyst to expand its offerings in a bid to grow its market dominance using AI apps and agents.

This colossal funding round follows the company’s acquisition of Coda in December, a productivity suite startup with a similar set of products to Google Workspace and Microsoft 365. Its products combine the features of a word processor, spreadsheet and other applications into a single cloud platform with a flexible document format that allows team collaboration.

“Integrating Coda and Grammarly has unlocked tremendous potential for how people work and communicate,” said Chief Executive Shishir Mehrotra. “I’m energized by the innovation happening across our teams as Grammarly has become a productivity platform serving everyone from individual students to growing businesses to large enterprises.”

Grammarly claims more than 40 million active users daily and annual revenue of more than $700 million. It provides a productivity platform for users and businesses that can be accessed via the web or integrated into applications. According to Grammarly, it brings AI directly into more than 500,000 applications and websites, enabling AI agents for proofreading, paraphrasing, tone suggestion and AI-enabled writing enhancements.

The addition of Coda brought Grammarly many productivity tools and capabilities, including Coda Docs, its document collaboration tools. Coda also launched Coda Brain, an AI document chatbot platform that can plumb through enterprise and company knowledge and surface information.

“We’ve been working with the Grammarly team for years as they became an early leader in applied AI,” said General Catalyst Chief Executive Hemant Taneja. “We are confident that this extension of our partnership will create significant long-term value and continue to drive Grammarly’s ability to accelerate enterprise adoption.”

The company said it will use the money to grow its customer base and extend the reach of its platform.

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