In April, Canva introduced new products, such as a conversation-based AI photo editor, aiming to attract corporate clients away from its competitor, Adobe.
Canva launched an employee stock sale at a $42 billion valuation. This milestone shows that there is a rapid growth for the Australian design software company, which is betting on artificial intelligence for its growth. Canva has also introduced AI features into its platform to automate design tasks, improve user creativity, and streamline workflows, aiming to differentiate itself in a crowded market.
Startups often issue shares to their employees as a way to reward and retain employees, as well as attract external investors. Through the share sale, the company can tap into investors’ interest to give employees access to funds while continuing to operate as a private company.
Employees can sell their shares to new and current investors, including Fidelity Management & Research Co. and JPMorgan Chase & Co.’s asset management division, according to a statement from Canva. This offer increases Canva’s valuation by over 30% from $32 billion in 2024.
Canva has welcomed Kelly Steckelberg, the former Chief Financial Officer of Zoom Video Communications Inc., as the company’s new Chief Financial Officer (CFO). Steckelberg will start her new role on November 26, as stated by Canva.
Zoom announced in August that Steckelberg would step down as CFO after seven years. She was in the company until last month to help with the transition of her successor. Zoom appointed Michelle Chang as CFO.
The company, which competes with Adobe, revealed that it was recently valued at $32 billion, from $26 billion in the fundraising round earlier this year. Investors have long viewed Canva as a potential candidate for an initial public offering (IPO), although the 11-year-old company has not made any specific plans regarding its public listing.
Cliff Obrecht, Canva’s co-founder and chief operations officer, announced that Kelly has an impressive record as a strong leader and strategic thinker, along with experience in scaling companies, thereby making her an ideal fit for their team.
Canva is adding AI features in its design tools to juice out revenue and prepare for a potential public offering. In April, it introduced new products, such as a conversation-based AI photo editor, aiming to attract corporate clients away from its competitor, Adobe. It can also respond to voice and text instructions to edit photos, create slide decks, and resize designs.
At a recent company event in Los Angeles, Canva announced new tools that can whip up code for app or website design from just a few simple prompts.
Canva is locked in a competitive struggle against Adobe, the leader in creative software, which already has its AI model, Firefly, integrated into its photo and video editing apps. In February, Adobe announced that it would charge 50 cents for each AI-generated video and informed users about price increases for some of its apps. Its stock has decreased by 25% after investor confidence regarding competition in the creative AI space declined. Its other competitor, Figma, is another major player in the field, valued at $34 billion after its public offering in July.
Cliff Obrecht, Chief Operating Officer and co-founder of Canva, remarked that the fundraising has seen extraordinary oversubscription. There was immense demand from new and existing investors, which shows a huge vote of confidence in their progress and potential ahead.
Canva, founded in 2013, quickly gained a loyal user base due to its user-friendly interface, where users can create everything from birthday invitations to social media posts. Canva recorded more than $3.3 billion in annualized sales and now boasts over 240 million monthly active users.