Grammarly ARR Hits $700M

Grammarly, the AI-powered writing assistant, has surpassed $700 million in annual recurring revenue (ARR) as of 2025, marking a significant milestone in its growth trajectory. This achievement underscores the company’s evolution from a grammar-checking tool to a comprehensive AI-driven productivity platform. With over 30 million daily active users, Grammarly continues to expand its user base and enhance its offerings to meet the diverse needs of individuals and enterprises alike. 

The platform’s core functionalities have evolved to include advanced features such as tone detection, style suggestions, and real-time writing feedback, catering to a wide range of communication needs. Grammarly’s integration capabilities allow it to function seamlessly across various applications and devices, ensuring users have consistent support wherever they write. The company’s commitment to user-centric design and continuous innovation has solidified its position as a leader in the AI writing assistance space.

In a strategic move to further its mission, Grammarly secured $1 billion in non-dilutive funding from General Catalyst in May 2025. This investment is aimed at accelerating product development, expanding sales and marketing efforts, and exploring strategic acquisitions. The funding structure allows Grammarly to maintain its equity while providing the capital needed for growth. Additionally, the acquisition of productivity startup Coda and the appointment of Coda’s CEO, Shishir Mehrotra, as Grammarly’s new CEO, signal the company’s intent to broaden its scope beyond writing assistance to encompass a wider range of AI-powered productivity tools.