Grammarly raises funds, valuation at $13B
Grammarly recently raised fresh capital at a valuation of $13 billion. The company has raised over $200 million in this round of funding led by Baillie Gifford. It plans to use the capital raised to improve product offerings.
“We believe this funding round is a great validation of our business strength,” said Grammarly global head of product Rahul Roy-Chowdhury. “We’ve been cash flow positive from the very early days. The round also validates the strength of our mission to improve lives through improving communication. This funding round comes in the context of product innovation and product scaling.”
“Looking ahead, I see so much potential because, at the end of the day, it always comes back to our mission of improving communication. There’s so much change in how work gets done with remote-first global teams trying to work together. We see a huge opportunity to help people with these changing scenarios communicate more effectively. This new funding is only going to help us accelerate our efforts to do that,” he added.
Grammarly is an AI-based writing assistant that offers to its users suggestions to improve the quality of their writing. It offers a free version with limited features. Grammarly Premium, its subscription service allows for a more comprehensive review of its users’ compositions.
Commenting on the investment, Baillie Gifford’s Peter Singlehurst stated, “As the world has digitized, people communicate more than they ever have—yet it has never been so difficult.” He added, “Grammarly is one of the few businesses in the world focused on solving this problem. What attracted us is the company’s vision and the team’s ability to drive the product forward to help more people in more situations communicate better. Grammarly’s long-term and ambitious approach also aligns with our approach to investing.”
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