Grammarly is an artificial intelligence (AI)-powered writing assistant that helps users improve their writing by identifying and correcting grammar, spelling, punctuation, and style errors. It offers users suggestions beyond basic spell check, providing contextually aware feedback to enhance a writer's clarity, conciseness, and overall writing quality.
Grammarly catches errors that even advanced spellcheckers might miss, like subject-verb agreement issues, incorrect tense usage, and more. The platform offers suggestions for improving sentence structure, word choice, and overall clarity, too. Premium accounts can detect plagiarism by comparing text against Grammarly's vast database of web pages and academic papers.
Grammarly was founded in 2009 by Max Lytvyn, Alex Shevchenko, and Dmytro Lider. The idea for Grammarly stemmed from the trio's previous venture, a plagiarism detection service.
During the development of the service, they noticed that many users were surprised by the amount of plagiarism in their work. This ultimately inspired the creation of a tool to help people translate their thoughts into clear, compelling written communication.
Initially, Grammarly was a subscription-based grammar and spelling checker aimed at students. The founders later expanded the product's capabilities and transitioned it to a freemium browser extension and cloud editor, integrating with popular platforms such as Alphabet's (GOOGL +2.51%) (GOOG +2.46%) Gmail and Google Docs and Microsoft's (MSFT -2.82%) Office suite.
The platform boasts a large user base, including more than 40 million individual users and 50,000 Grammarly Business accounts. Their consumer base is growing, too, particularly among non-native English speakers who rely on Grammarly for professional and academic writing purposes.
Investors may be wondering whether they can invest in Grammarly stock now or in the near future. Here's what you need to know.
Is Grammarly publicly traded?
No, Grammarly is not publicly traded. It is a private, venture-backed company. This means its stock is not available for purchase on public exchanges like the New York Stock Exchange or the Nasdaq Stock Exchange.
While Grammarly is not publicly traded, accredited investors can buy and sell shares in the private market. These secondary markets allow for the trading of private company stock before an initial public offering (IPO). However, for most retail investors, it is not possible to purchase shares of Grammarly at this time.
IPO
When will Grammarly IPO?
Grammarly is currently a private company and has not announced a specific date for an IPO. While the company was valued at $13 billion in its last funding round in November 2021, and some reports suggest that an IPO could be a future goal, it is not actively pursuing one at this time.
An S-1 filing required for an IPO has not yet been submitted. Co-founder Max Lytvyn said in a July 2023 interview that the company was ready to go public, but it didn't see any immediate need to pursue that route.
The company has been ramping up its investments in AI in the last few years. In December 2024, Grammarly acquired Coda, an AI productivity platform. Coda's tools, such as Coda Docs and Coda Brain, expanded Grammarly's capabilities beyond writing assistance into areas like knowledge management, document creation, and collaborative workspaces.
The acquisition resulted in Coda CEO Shishir Mehrotra becoming the new CEO of Grammarly. In July 2025, Grammarly acquired Superhuman, an AI-powered email client designed to enhance email efficiency. The acquisition aims to integrate AI agents into email workflows, enabling users to streamline tasks such as email composition, scheduling, and information retrieval.
The company also secured $1 billion in non-dilutive financing from General Catalyst in May 2025, a move that doesn't affect its valuation or its existing shareholders. This development also suggests that Grammarly has ample resources for growth and isn't facing pressure to go public in the immediate future.
The recent funding round is intended to continue fueling Grammarly's platform shift from a writing assistant to a broader AI productivity platform, including future strategic acquisitions.
How to buy Grammarly stock
Grammarly is a privately held company, meaning its stock is not available for purchase on public stock exchanges. To invest in Grammarly, you must be an accredited investor or an institutional investor. However, there are some publicly traded alternatives to consider.
Microsoft
Microsoft is primarily known for its software, like the Windows operating system and the Microsoft Office suite (which includes Word, Excel, and PowerPoint). It's also known for its market-leading cloud computing services (Azure), the Xbox gaming consoles, and the Edge web browser.
Microsoft also offers Microsoft Editor and Copilot, which directly compete with Grammarly's core grammar-checking, spelling, and style-suggestion features. For users already subscribed to Microsoft 365, Microsoft Editor is essentially a free addition that offers grammar and spell checking, which could be a significant cost advantage compared to Grammarly's premium plans.
Microsoft's financial performance in fiscal year 2025 was exceptional, with revenue reaching $281.7 billion, a 15% increase year over year, and net income of $101.8 billion (up 16%).
Alphabet
Alphabet's Google boasts a suite of products, like Google Docs and Gmail, that increasingly offer integrated AI-powered writing assistance, including grammar checks, spelling corrections, and even AI-powered composition features. While Grammarly is solely focused on AI-enhanced writing assistance, Alphabet's integration of similar features into its widely used Workspace products directly competes for users who might otherwise turn to Grammarly.
Alphabet, with its vast resources and market dominance across various tech sectors (search, cloud, advertising), is well positioned to compete with companies like Grammarly by integrating AI writing features into its existing services and potentially even expanding its offerings further into the writing assistance space.
Alphabet's consolidated revenue increased 14% year over year to $96.4 billion in the second quarter of 2025, with Google Cloud revenues surging 32% year over year. Net income increased 19%, and earnings per share (EPS) rose 22% to $2.31 in the quarter. Alphabet is aggressively investing in AI infrastructure and cloud expansion and revised its capital expenditures forecast to as much as $85 billion for 2025.
The bottom line on Grammarly
Grammarly is a successful and profitable private company with strong investor backing and a growing user base. However, direct investment is limited to accredited investors at this time.
The company is actively expanding its offerings to address the evolving AI landscape and faces competitive pressures and execution risks as it transitions into a broader productivity platform. For investors who want to gain exposure to this space, there are numerous established and publicly traded players to consider.
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