Grammarly will acquire productivity startup Coda, the company announced Tuesday. As part of the deal, Coda CEO and co-founder Shishir Mehrotra will become Grammarly's new CEO.
Financial terms of the deal were not disclosed.
The acquisition transforms Grammarly's AI assistant into an “AI productivity platform” with the addition of Coda's AI tools and products, the company said. The deal will give Grammarly customers access to new features like generative AI chat and a productivity suite that will help them work more efficiently.
Rahul Roy Chowdhury, Grammarly's current CEO, said in a statement that he will step down from his role and work with Mehrotra in an advisory role.
Mehrotra, a 25-year tech veteran who previously served as YouTube's chief product officer and chief technology officer, outlined his vision for Grammarly in a blog post. It's about making AI assistants smarter and more helpful.
“Not only does the Assistant offer amazing suggestions and improvements based on the texts you see today, but it also has permission-aware connections to all your other systems (from email to docs to CRM to project tracker, etc.). '', writes Mehrotra.
Additionally, Coda's core product, Coda Docs, is being upgraded with Grammarly Assistant.
“Longer term, we plan to combine and incorporate the strengths of Coda and Grammarly,” Mehrotra wrote. “We combine enterprise knowledge, generative AI chat capabilities, a complete productivity suite, and hundreds of agents to help you work smarter. We aim to redefine productivity in the age of AI. Masu.”
Founded in 2009, Grammarly has 40 million active users and is valued at $13 billion. Coda was valued at $1.4 billion after raising Series D funding in 2021.
As AI assistants become increasingly accessible, Grammarly's acquisition of Coda will position it well to compete with companies that develop AI tools for writing and productivity.