Grammarly raises $200M to expand its AI-powered writing suggestions platform

San Francisco, California-based Grammarly, which develops an AI-powered writing assistant, today announced that it raised $200 million, valuing the company at $13 billion post-money. Baillie Gifford led the round with participation from funds and accounts managed by BlackRock. Grammarly CEO Brad Hoover says the funding will be put toward further developing the company's technology and "accelerat[ing] efforts to help people communicate … in our digital-first world." As enterprises increasingly embrace digitization, the over $1.2 billion AI writing assistant market is expected to grow at a compound annual growth rate of 27.6% from 2018 to 2028. According to a survey from John Snow Labs and Gradient Flow, 60% of tech leaders indicated that their budgets for natural language processing -- which encompasses technologies like Grammarly's -- grew by at least 10% compared to 2020, while a third said that their spending climbed by more than 30%.