Exclusive-GramMarly provides $ 1 billion from General Catalyst to build an artificial intelligence production platform

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Companies told Reuters that the grammar raised one billion dollars of non -general financing to expand artificial intelligence offers (AI), aimed at growing to a comprehensive production platform.

Grammarly, known as its famous writing tool, plans to use capital to finance sales, marketing and strategic acquisition costs. He looks forward to using artificial intelligence to create more communications -based productivity tools and to host third -party tools on their platform by taking advantage of reaching 40 million users per day.

Investment, which is one of the largest customer value funds in General Catalyst (CVF), can help later technology companies in the late stage, such as grammatical growth to accelerate growth using the capital designated to acquire new customers. By re -allocating money it is usually linked to sales and marketing, it can invest more bases in the development of products.

On the other hand, General Catalyst does not receive a share of shares in the grammar of the language, but it will get a specific return related to the revenues created by using this capital. This has been organized as a percentage of revenues resulting from the box used in customer acquisition.

Founded in 2005, where Grammarly has annual revenues exceeding $ 700 million and is profitable. In December, Shishir Mehrotra, former CEO of Coda Productivity platform, was set as a new leader, indicating the broader workplace tools.

“Since the grammatical rules go through a major transformation from being known mostly as a one -purpose factor to being an agent platform, I felt that it is very important for us to be able to bet in developing our products and in integration and purchases as well as in our growth strategies.”

He added that the company has a final goal for the public, although there are no imminent plans.

“Now I have focused on making sure that we are creating with new products, and growing as quickly as possible. But when we feel prepared, we will go to the audience,” he added.

The allocated growth investment, if its fruits, can benefit from evaluating the Grammarly and General Catalyst share in the company, as he was also an investor of stocks in the financing of Series B’s Series B in 2017.

San Francisco grammatical rules collected more than $ 550 million in investment capital, according to the stadium’s book. The last value of $ 13 billion in 2021.

General Catalyst works by drawing capital from the company’s main investment fund, including 8 billion dollars collected. This approach is part of the strategic development of the investment company, led by Hemant Taneja, as it seeks to grow outside the traditional investment capital model, including creating innovative financing mechanisms.

The customer acquisition fund has invested in approximately 50 companies, including lemon juice and Fivetran, as it leads to growth measures to a more predictive path.

“Companies like Grammarly have a machine in the first place, as they can invest dollars in sales and marketing and generate a very fixed return,” said Branaf Singvy, Managing Director of General Catalyst, with this wave of artificial intelligence.

(Participated in Krystal Hu reports in New York; Edit by Giles Elgood)