Grammarly has just acquired email startup Superhuman as part of its larger strategy beyond grammar correction to build a complete AI-powered productivity suite.
In an interview with Reuters, executives from both companies confirmed the deal without revealing its financial terms.
Grammarly, which evolved from a writing assistant into a leading AI platform with 40 million users every day and revenues surpassing $700 million, was founded in 2005 and is headquartered in San Francisco.
Fresh off of raising $1 billion in funding led recently by General Catalyst, the company is making a major investment in building out a new suite of workplace tools. The purchase of Superhuman is one of the largest moves in that direction.
A strategic expansion beyond grammar
While Grammarly has become a go-to tool for students, professionals, and businesses trying to improve writing clarity, the firm is now looking to expand its reach. It is now developing a rebrand to reflect its aims to expand into the broader productivity market.
“Email remains the world’s most widely used communication medium. Grammarly CEO Shashir Mehrotra noted that professionals spend approximately three hours every day in their inboxes. “Superhuman is the obvious leading innovator in the space.”
Grammarly intends to incorporate its generative AI agents into Superhuman’s interface, allowing for capabilities more than improved message composition.
The purpose is to enable users to easily access, comprehend, and act on information from all of their digital communications.
Superhuman’s role in the AI productivity ecosystem
Founded in San Francisco with over $110M in funding led by IVP and Andreessen Horowitz, Superhuman became known as a fast, high-end email tool for accelerators.
The startup that once had a lengthy waitlist for new users and a unique gatekeeping procedure has now matured, and while the product is more accessible, it still retains a premium brand.
In 2021, the last valuation of Superhuman was $825 million. The company now does roughly $35 million per year in revenue.
It has focused on AI improvements over the last 12 months, with usage data indicating people are sending and replying to 72% more emails in an hour.
In addition, the percentage of emails written with AI tools has grown five times.
It frames Superhuman as well-suited for Grammarly’s aspirations, especially as more competitors appear on the scene.
While smaller players are focused on innovation or user experience to stand out in the space, the stakes are raised as technology behemoths like Google and Microsoft keep embedding musty AI within their respective email products.
Giants in the productivity market
The acquisition also represents a larger trend: the competition to define the next generation of work tools through AI.
Grammarly’s entry into this market places it alongside established players such as Microsoft, Google, and Salesforce, all of which are significantly investing in AI-driven productivity gains.
Mehrotra and Superhuman creator Rahul Vohra envision a future in which people interact with an AI agent network that connects email, documents, and digital workflows.
These technologies are intended to reduce the amount of time spent searching for information or writing responses, streamlining work for professionals working in fast-paced digital contexts.
What’s ahead?
The combination allows Grammarly to strengthen its position in the enterprise sector by merging its core AI technology with Superhuman’s productivity-oriented design.
The agreement allows Superhuman to scale and compete more effectively as the AI email sector becomes increasingly congested.
While precise product plans for after the acquisition have not been disclosed, both firms indicate that integration is currently ongoing.
As Grammarly evolves, the addition of Superhuman might help the company establish itself as a genuine player in the future of work software. Grammarly’s next chapter appears to go far beyond the red squiggly line.
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