Grammarly Acquires Coda: New CEO Announced

Grammarly Acquires Coda to Enhance AI Capabilities

Grammarly has announced the acquisition of Coda, a productivity-focused startup, on Tuesday. This strategic move will see Shishir Mehrotra, Coda’s CEO and co-founder, assume the position of Grammarly’s new CEO.

Deal Details and Financials

The specifics of the financial agreement have not been publicly revealed. However, the acquisition is expected to significantly bolster Grammarly’s offerings.

Transforming into an AI Productivity Platform

The integration of Coda’s AI technologies and products is intended to evolve Grammarly’s AI assistant into a comprehensive AI productivity platform. This expansion will provide Grammarly users with access to innovative functionalities.

These new features include generative AI chat capabilities and a complete productivity suite, all designed to streamline workflows and enhance efficiency.

Leadership Transition

Rahul Roy-Chowdhury, the current CEO of Grammarly, has announced his departure from the role. He will continue to contribute to the company as an advisor, working closely with Mehrotra during the transition.

Mehrotra’s Vision for Grammarly

Shishir Mehrotra, a seasoned technology leader with 25 years of experience – including previous roles as YouTube’s Chief Product Officer and Chief Technology Officer – has articulated his vision for Grammarly’s future.

He envisions an AI assistant that is not only capable of providing insightful writing suggestions but also possesses secure access to a user’s various systems.

“Imagine an assistant that seamlessly integrates with your email, documents, CRM, and project trackers,” Mehrotra explained in a blog post.

Enhancements to Coda Docs

Furthermore, Coda’s flagship product, Coda Docs, will be enhanced with the integration of the Grammarly Assistant. This will provide users with real-time writing feedback and improvements directly within the Coda environment.

Future Integration Plans

“Our long-term strategy involves a deep integration of Coda and Grammarly,” Mehrotra stated. “This will result in a powerful combination of company knowledge, AI-powered chat, a full productivity suite, and intelligent agents.

The goal is to redefine productivity in the age of artificial intelligence.”

Company Background and Valuation

Established in 2009, Grammarly currently serves 40 million active users and holds a valuation of $13 billion. Coda achieved a valuation of $1.4 billion following its Series D funding round in 2021.

Competitive Positioning

With the increasing prevalence of AI assistants, Grammarly’s acquisition of Coda positions the company to effectively compete with other organizations developing AI-driven tools for writing and productivity.

This move underscores Grammarly’s commitment to innovation and its ambition to remain a leader in the evolving landscape of AI-powered productivity solutions.