Grammarly is acquiring AI productivity startup Coda, and will bring on Coda co-founder Shishir Mehrotra as Grammarly’s new CEO.
Coda’s flagship product is a collaborative workspace hub, as well as a multi-user document editor known as Coda Docs. These features will be incorporated into Grammarly’s AI assistant, which will now host a productivity suite and an AI chatbot.
“We plan to weave the best of Coda and Grammarly together,” said Shishir Mehrotra, Coda’s co-founder and CEO and incoming CEO of Grammarly. “It will combine your company knowledge, generative AI chat features, a full productivity suite, and hundreds of agents to help you work smarter. We aim to redefine productivity for the AI era.”
“In this next chapter, you’ll still be able to use the Grammarly you know and love — and you’ll also have new tools to help you work faster and smarter in lots of new ways,” said current Grammarly CEO Rahul Roy-Chowdhury.
Coda Docs will also incorporate Grammarly’s AI assistant.
Grammarly’s AI agents are used across 500,000 applications and websites by more than 40 million people each day, according to the company. Coda’s productivity tools are used by companies like Figma, DoorDash, and the New York Times.
Mehrotra served as YouTube’s chief product officer and chief technology officer before founding Coda. Roy-Chowdhury will continue to work with Mehrotra as an advisor.
While Grammarly did not disclose the amount it paid to acquire Coda, the startup was valued at US$1.4 billion in 2021 after a series D funding round. The acquisition is expected to close in January.
Grammarly is privately held, and was valued at US$13 billion in September. The company is reportedly considering an initial public offering, though no date has been set.