Grammarly raises fresh capital fund at a valuation of $13 billion


Grammarly, which makes artificially intelligent software that helps improve people’s writing, has raised fresh capital at a valuation of $13 billion, underscoring sky-high demand for technology tools that provide writing assistance.

The surge in its valuation highlights Grammarly’s stunning growth in recent years after it launched a freemium business model in 2015, helping it amass a loyal base of millions of daily users and other big-name enterprise customers including Zoom Video Communications Inc, Cisco Systems Inc , Dell Technologies Inc and Expedia Group Inc .

In its previous funding round in 2019, it was valued at more than $1 billion. Grammarly said its services are currently used by roughly 30 million people every day.

In the latest round, Grammarly raised over $200 million from investors led by Baillie Gifford and funds and accounts managed by BlackRock Inc.

The startup has no imminent plans to go public, Chief Executive Officer Brad Hoover told Reuters in an interview.

Founded in 2009 by Max Lytvyn, Alex Shevchenko and Dmytro Lider, Grammarly was initially focused on a subscription-based product to help students with their and spelling.

Grammarly uses machine learning to assist not only with basic writing, but also spell-check, grammar, tone of language and context.

Since it was launched, Grammarly has built numerous products, including Grammarly Business, which help large across different functions including sales and marketing. Some of its other services include a plagiarism detector.

The startup also recently struck a partnership with Samsung Electronics, and under the deal, Grammarly’s writing suggestions will be integrated with the South Korean company’s smartphone keyboard. That will enable Samsung customers to use Grammarly’s tools, without having to install an app.

Grammarly also has a desktop application for Microsoft Corp’s Windows and Apple Inc’s Mac operating systems.

(Reporting by Sohini Podder in Bengaluru; Editing by Anirban Sen and Sherry Jacob-Phillips)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

mail Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor


Source link