Writing software company Grammarly has secured $1 billion in non-dilutive financing from General Catalyst to accelerate the growth of its artificial intelligence platform and expand its reach as a workplace productivity tool, the companies announced Thursday.

The funding, one of the largest investments from General Catalyst’s Customer Value Fund, will allow Grammarly to invest heavily in sales, marketing, and strategic acquisitions without giving up equity. Instead of a stake in the company, General Catalyst will receive returns tied to revenue generated from the capital’s use in acquiring new customers.

Grammarly, best known for its writing assistant tool used by over 40 million people daily, plans to leverage its vast user base to introduce new AI-driven communication tools and host third-party applications on its platform. The company is aiming to become a broader productivity hub powered by AI.

“As Grammarly transforms from a single-purpose tool to a platform, it’s critical we make bold investments in product development, growth, and acquisitions,” said CEO Shishir Mehrotra, formerly of Coda. While there are no immediate plans to go public, Mehrotra said an IPO is a future goal.

Founded in 2009, Grammarly is profitable and reports annual revenues exceeding $700 million. Its last funding round in 2021 valued the company at $13 billion. To date, Grammarly has raised more than $550 million in venture capital, according to PitchBook.

General Catalyst’s CVF, which operates independently from its main $8 billion venture fund, is part of the firm’s push to modernize the venture capital model. The fund has previously backed companies like Lemonade and Fivetran, focusing on predictable growth through customer acquisition.