Grammarly Expands AI Suite with Acquisition of Productivity Startup Coda

April 9, 2025

---

Grammarly, a leader in AI-driven writing assistance, announced on Tuesday that it is acquiring productivity startup Coda, in a move to significantly expand its technological capabilities. With this acquisition, Coda’s CEO and co-founder, Shishir Mehrotra, will assume leadership as the new CEO of Grammarly. This expansion will introduce new features such as generative AI chat and a complete productivity suite, aiming to make Grammarly's tools more robust and versatile for its users.

Mehrotra, bringing over 25 years of tech experience, outlined his vision for a more interconnected and intelligent Grammarly in a blog post. He imagines an enhanced AI assistant that integrates seamlessly with a user's existing digital tools—from emails and documents to CRM systems and project trackers—offering smarter, context-aware suggestions. Founded in 2009, Grammarly has grown to serve 40 million active users and boasts a valuation of $13 billion. Coda, valued at $1.4 billion in 2021 following a Series D funding round, has been noted for its innovative approach to dynamic document creation and management.

The acquisition places Grammarly in a strong position within the increasingly competitive market of AI tools for writing and productivity. This strategic move not only enhances Grammarly's functionality but also broadens its appeal to a wider audience seeking more sophisticated, AI-powered productivity solutions.

Author: Mikaela Wang, 2024/2025 Articling Student-At-Law