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Grammarly’s Strategic Expansion into Email with Superhuman Acquisition
Grammarly, initially known as a spell-check application, has made a significant move by acquiring Superhuman, an AI-powered email platform. This acquisition marks a pivotal step in the company’s evolution, as email has become one of the most widely used functions within its ecosystem. The alignment between the two companies is seen as a natural fit, with both focusing on enhancing productivity through technology.
Shishir Mehrotra, CEO of Grammarly, expressed his enthusiasm for the partnership, stating that it felt like “peas in a pod.” He emphasized that both he and Superhuman founder Rahul Vohra had a shared vision of redefining communication tools. This synergy has led to a broader strategy aimed at transforming how people interact with digital content across various platforms.
The acquisition follows Grammarly’s purchase of Coda at the end of the previous year, which further solidified Mehrotra’s role as CEO of the combined entity. In a previous interview, Mehrotra outlined his ambition to position Grammarly as the “blinking cursor of choice,” leveraging its AI capabilities to enhance user experiences beyond basic grammar checks.
Expanding the AI Productivity Suite
Mehrotra’s vision extends beyond just improving spelling and syntax; he aims to create an “AI superhighway” that allows users to access a wide range of tools and data while communicating. This approach aligns with the acquisition of Coda, which provides a collaborative workspace for users to engage with multiple agents simultaneously.
With the addition of Superhuman, Grammarly gains access to a large user base familiar with AI technologies. According to a 2023 Microsoft study, the top quartile of users spent 8.8 hours per week on email, highlighting the importance of this domain. Gartner estimates that there are over one billion knowledge workers globally, underscoring the potential market for enhanced email solutions.
Superhuman, valued at $825 million in its latest funding round, offers a streamlined email experience that caters to busy professionals. Although specific user numbers are not disclosed, the platform has attracted a loyal following, particularly among those who prioritize efficiency and speed.
A History of Innovation and Collaboration
Mehrotra’s journey with email began during his time at Microsoft in the early 2000s, where he contributed to the development of Outlook. His connection with Vohra dates back to a 2017 tech conference in Hawaii, where Vohra demonstrated Superhuman on a poolside setting. This encounter sparked a lasting relationship that would eventually lead to their collaboration.
Vohra recalls that Mehrotra delivered a compelling product demo for what would later be known as Coda, a versatile tool combining document creation, spreadsheet functionality, and collaboration features. This meeting laid the groundwork for future partnerships, culminating in the acquisition of Coda by Grammarly.
The integration of Coda with Grammarly has been ongoing, with plans to eventually introduce a new name for the combined company. In May 2024, Grammarly secured a $1 billion investment from General Catalyst, signaling its commitment to expanding its AI-powered productivity platform.
Building an AI-Native Productivity Suite
Mehrotra envisions an “AI-native productivity suite” that operates like a compound startup, with each business unit functioning as an independent entity. This model draws inspiration from Google’s approach after acquiring YouTube, allowing the acquired company to maintain its autonomy while benefiting from increased resources.
Vohra will remain with the new company, continuing to develop Superhuman while benefiting from additional funding and strategic partnerships. Mehrotra emphasizes the importance of maintaining focus on innovation, ensuring that the team remains dedicated to advancing email technology.
Legacy software providers such as Microsoft and Google have long dominated the workplace, with products like Outlook, Word, and Excel being essential skills for many office jobs. However, Mehrotra and Vohra believe that their AI-native solutions are capable of driving workplace innovation, challenging the status quo.
“The view was these [legacy] suites are unassailable, nobody’s going to switch what they use for documents or emails, that’s clearly not true,” Mehrotra stated. He noted that users are increasingly open to change, with Coda, Superhuman, and other products demonstrating a growing demand for more efficient tools.
As Grammarly continues to expand its offerings, the focus remains on creating a seamless, AI-driven experience that enhances productivity across various domains. With the integration of Superhuman, the company is well-positioned to lead the next wave of innovation in digital communication.
