What is the business model of Grammarly?

Grammarly operates primarily on a freemium subscription model. It offers a free version of its AI-powered writing assistant that provides basic grammar and spelling checks to attract a wide user base. To unlock advanced features like style improvements, tone detection, plagiarism checks, and vocabulary enhancement suggestions, users can subscribe to premium plans. Grammarly’s revenue comes mainly from these paid subscriptions, targeting individuals, professionals, students, and businesses. Additionally, Grammarly offers business plans tailored for teams and enterprises that need collaborative writing tools, administrative controls, and enhanced security. By combining a free offering that hooks users with essential features and premium subscriptions that deliver deeper value, Grammarly effectively monetizes its AI-powered language technology while continually growing its user base.

According to my view, they are earning from its paid version, because in their free version, they are providing limited features so that the person go for paid version and that's Grammarly main business revenue model.

as I know it has two models - the one which is free for the users and the premium one - which generates it's income using subscription fee and has additional benefits for the user

Grammarly's business model revolves around providing a premium grammar and spell-checking service for individuals, teams, and enterprise customers. The company offers a free browser extension and mobile app that checks for basic grammar and spelling errors, but its paid subscription service provides advanced features such as style suggestions, plagiarism detection, and integration with various writing platforms. Additionally, Grammarly licenses its technology to other businesses to integrate into their own products and services, generating additional revenue streams. Overall, Grammarly's revenue model is based on a freemium model supplemented by B2B sales.