Canva, the Australian design platform co-founded by Melanie Perkins, launched an employee share sale valuing the company at $42 billion, Reuters reported, citing the company. The sale would allow employees to sell shares to new and existing investors.
Existing shareholder Fidelity Management led the transaction, with JPMorgan’s asset management division joining as a new investor, according to Canva. Co-founder and chief operating officer Cliff Obrecht said it was “significantly oversubscribed.” The number of shares to be sold was not disclosed. The $42 billion figure represented the company’s valuation, not the proceeds of the sale.
Reuters reported that Canva was investing heavily in artificial intelligence tools for its more than 240 million monthly active users. The company reported annualised revenue of $3.3 billion.
Expansion into AI and workplace tools
Canva’s browser-based platform supports tasks including presentations, social media posts and invitations. Reuters reported that the company had introduced AI tools allowing users to generate designs and interactive elements through plain-English instructions.
In its 2024 year-end review, Canva said it acquired professional design software business Affinity in March and generative AI company Leonardo.Ai in July. It launched Dream Lab, an image generator incorporating Leonardo’s technology, in October.
Canva also introduced its Enterprise subscription in May 2024 for large organizations. The company said more than 220 million people across more than 190 countries used Canva in December that year.
From school yearbooks to online design
Perkins traced the idea for simpler online design software to her experience teaching design programs while studying at the University of Western Australia. In an account published by Canva, she said students struggled with desktop software and that she wanted to make design tools simpler, online and collaborative.
She and Obrecht first applied that concept to school yearbooks through Fusion Books, launched in 2007. According to Perkins, they worked from her mother’s living room in Perth, borrowed money to develop the software and initially combined the business with university studies and part-time jobs.
Canva announced a $3 million seed round on March 20, 2013, naming investors including Matrix Partners, InterWest Partners and 500 Startups. The announcement also identified former Google lead designer Cameron Adams as a co-founder and head of product. Perkins said she and Obrecht had been introduced to investors at the MaiTai kiteboarding and entrepreneur conference in Hawaii.
TechCrunch reported Canva’s public beta launch on August 26, 2013. Its drag-and-drop interface combined layouts with photographs, graphics and fonts. At launch, Perkins said the service was not intended to replace tools such as Photoshop or InDesign for work requiring detailed pixel manipulation; designers could instead upload assets and arrange them in Canva.
Founders’ equity pledge
In 2021, Perkins and Obrecht announced plans to donate the majority of their equity—described by Canva as 30% of the company—to charitable work through the Canva Foundation, according to the company.
Canva includes that commitment in what it calls its broader “31% pledge.” The company said it had also joined Pledge 1% in 2019, committing 1% of its profit, equity, product and time.