Grammarly, a prominent player in the field of writing assistance and AI-driven productivity tools, has announced its acquisition of productivity startup Coda on Tuesday, a move that marks a significant shift in the company’s approach to enhancing its offerings. The financial details of the acquisition remain undisclosed, but the implications for both companies are substantial.
As part of this strategic deal, Shishir Mehrotra, CEO and co-founder of Coda, will take over as the new CEO of Grammarly. The transition will see former CEO Rahul Roy-Chowdhury stepping down from his position but continuing to support the company as an adviser. This leadership change is expected to bring fresh perspectives and innovations to Grammarly's evolving AI capabilities.
Coda's integration into Grammarly is poised to transform the company's AI assistant into what has been described as an "AI productivity platform". This enhancement will feature the incorporation of Coda's advanced AI tools and functionalities, equipping Grammarly users with access to new capabilities such as generative AI chat and an expanded productivity suite. These improvements aim to assist users in working more efficiently, aligning with the growing demand for innovative AI solutions in business contexts.
In a blog post outlining his vision for Grammarly's future, Mehrotra articulated a concept for the AI assistant that extends beyond traditional writing suggestions. He envisions an assistant that can integrate across various systems, stating, “Imagine if the Assistant not only gave amazing suggestions and refinements based on the writing it sees today but also had permission-aware connections into all of your other systems (from your email to docs to CRM to project trackers and more).” This perspective highlights the potential for a more interconnected and context-aware productivity tool.
Additionally, the core product of Coda, Coda Docs, is set to be upgraded with Grammarly's assistant features, further enriching the user experience with enhanced writing support capabilities. In looking towards the future, Mehrotra indicated, “In the longer term, we plan to weave the best of Coda and Grammarly together,” suggesting a vision that blends company knowledge, generative AI chat functionalities, and a comprehensive productivity suite.
Founded in 2009, Grammarly currently boasts a user base of 40 million active users and a valuation of approximately $13 billion. Coda, on the other hand, reached a valuation of $1.4 billion following its Series D fundraising round in 2021. This acquisition positions Grammarly advantageously in a competitive landscape where AI tools for writing and productivity are rapidly advancing, reflecting the increasing reliance on automation and intelligent systems in business practices.
Source: Noah Wire Services