Grammarly, the popular auto-editing for writing, has raised $200 million in funding at new investors' $13 billion valuation.
The surge in its valuation highlights Grammarly's spectacular growth in the recent years after it was launched as a freemium business model in 2015, helping it gather a loyal base of millions of daily users and other big-name enterprise customers, including Cisco Systems Inc, Dell technologies, Zoom Video Communications Inc, and Expedia Group.
Grammarly's free service picks up on misspellings, unnecessary words, and grammatical errors. The paid version detects plagiarism and offers additional types of recommendations. Grammarly helps business and enterprise tiers workers have a familiar brand voice and stay compliant with style guides. Nearly 30 million people use Grammarly every day.
Brad Hoover, CEO of Grammarly, said that Google Docs and Microsoft Word could do some of Grammarly's tasks. Services like Advance Publications-owned Turnitin can find instances of plagiarism. However, given all of its capabilities, Grammarly does not have a single direct competitor.
Dmytro Lider, Alex Shevchenko, and Max Lytvyn started Grammarly in 2009. Today, the company employs over 600 employees, with offices in Vancouver, San Francisco, and Kyiv.