The renowned Grammarly had been quietly building a freemium grammar checker to help writers and students to get their spellings right on social and professional platforms. Now this led them to raise $110 million in funding from IVP, Spark Capital and General Catalyst to take this business forward.
The eight years old startup is getting big bets from investors because it has already proven itself to be profitable. This spellchecker is the first venture round for Grammarly about which General Partner at IVP Jules Maltz said, “It’s growing faster than anything we normally see in San Francisco. We expect this to be a meaningful company in the years to come.”
Grammarly has 6.9 million daily users most of whom use the service for free. The money for the company comes from the users who are paying $11.99 monthly for the structure and vocabulary checker feature. Grammarly also has a Chrome extension that allows the users to proofread online documents. A general partner at Spark Capital, Jeremy Philips, said that they invested in Grammarly because they love the product and the mission of improving the way people communicate.