Grammarly announced its acquisition of productivity startup Coda, signaling a major step toward transforming its AI writing assistant into a comprehensive productivity platform. As part of the deal, Shishir Mehrotra, co-founder and CEO of Coda, will take over as Grammarly’s new CEO. Current CEO Rahul Roy-Chowdhury will transition into an advisory role to support the leadership change.

While the financial terms of the deal were not disclosed, this acquisition reflects Grammarly’s ambitions to expand beyond writing assistance. The integration of Coda’s AI-driven tools will introduce features such as generative AI chat and an advanced productivity suite, enabling users to work more efficiently.

Rahul Roy-Chowdhury expressed optimism about this transition. Mehrotra, who has 25 years of experience in the tech industry and previously served as YouTube's Chief Product Officer, shared his vision for Grammarly in a blog post. He envisions the AI assistant evolving into a tool that connects seamlessly with other systems, including email, documents, CRM, and project trackers, to deliver smarter and more personalized assistance.

“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,” Mehrotra wrote.

Coda’s flagship product, Coda Docs, will also benefit from this partnership by integrating Grammarly’s AI capabilities. Mehrotra highlighted the long-term potential of combining the strengths of both companies to redefine productivity in the AI era.

“In the longer term, we plan to weave the best of Coda and Grammarly together,” Mehrotra explained. “It will combine your company knowledge, generative AI chat features, a full productivity suite, and hundreds of agents to help you work smarter.”

Founded in 2009, Grammarly now boasts 40 million active users and a valuation of $13 billion. Coda, founded in 2014, was last valued at $1.4 billion following its Series D funding round in 2021.

This acquisition positions Grammarly to better compete in the growing AI productivity space, which includes rivals offering advanced tools for writing, collaboration, and task management. With AI becoming increasingly accessible, Grammarly’s move to acquire Coda solidifies its place as a leader in the field and paves the way for significant innovation.

TECHCRUNCH