Grammarly Receives USD 1 Billion Non-Dilutive Investment From General Catalyst

The American writing assistant startup company – Grammarly has now received a USD 1 billion investment from the venture capital firm – General Catalyst. To note, unlike traditional investments that we have seen before, this investment is not over any equity share.
Read more about the update below.
General Catalyst Invests USD 1 Billion in Grammarly
As mentioned, Grammarly has now acquired a USD 1 billion investment from General Catalyst and this fund received is going to be used for sales and marketing purposes by the company. Notably, Grammarly will be paying back this capital along with a percentage of the revenue generated via the investment fund to General Catalyst, and the latter won’t be keeping any equity share for the investment that has been made.
Speaking more, this investment is from the Customer Value Fund (CVF) of General Catalyst and it is usually given to developed startups with proper revenue to grow their business. In the case of Grammarly too, as pointed out above, the fund will be used to promote its services and generate more revenue, and the company’s existing capital will be used for making beneficial acquisitions. Moreover, as this investment is non-dilutive, Grammarly’s valuation won’t be affected and its current equity shares remain with itself.
Just to add, back in 2021, Grammarly’s valuation was at USD 13 billion, however it has dropped significantly lower now as per reports. Also, in December 2024, the company acquired Coda (a startup offering various services) and following which, had an annual revenue of more than USD 700 million.
Stay tuned for more updates.