Grammarly, the provider of AI-powered writing assistance tools, has announced the acquisition of productivity startup Coda. As part of the deal, Coda’s CEO and co-founder, Shishir Mehrotra, will assume the role of Grammarly’s new CEO. The financial terms of the agreement have not been disclosed, according to TechCrunch.
Grammarly stated that the acquisition will help transform its AI assistant into an “AI productivity platform.” This will allow Grammarly users to access new features, such as generative AI chat and a comprehensive productivity suite, aimed at enhancing work efficiency.
Rahul Roy-Chowdhury, Grammarly’s current CEO, announced he will step down from the position and work as an advisor alongside Shishir Mehrotra.
Mehrotra, who previously served as YouTube’s Chief Product Officer and Chief Technology Officer, outlined his vision in a blog post. He wrote, “Imagine an assistant that not only advises based on your writing but also connects to other systems like your email, docs, CRM, and project trackers to become even smarter and more helpful.”
With this acquisition, Coda’s core product, Coda Docs, will be enhanced by Grammarly’s AI Assistant. Mehrotra also revealed plans for long-term integration, stating, “We aim to combine the best features of Coda and Grammarly, creating a smart work solution that unifies company knowledge, generative AI chat features, a full productivity suite, and hundreds of agents.”
Founded in 2009, Grammarly now serves 40 million active users and is valued at $13 billion. Coda, valued at $1.4 billion during its Series D funding round in 2021, has been a notable player in the productivity tools market.
This acquisition is expected to strengthen Grammarly’s position in the competitive landscape of AI-driven writing and productivity tools.
