• Canva is raising prices significantly for some users, attributing part of the increase to generative AI costs.
• In the U.S., Canva Teams’ five-person plan has increased from $119.99 to $500 annually, with a 40% discount for the first year.
• In Australia, the flat fee of $39.99 AUD per month has shifted to $13.50 AUD per user.
• Individual Canva Teams users will now pay $100 per year per person, with a three-user minimum.
• The price hikes affect legacy users who previously paid lower prices, but Pro and Enterprise tiers remain unchanged.
• Users are frustrated, particularly with Canva’s decision to announce the changes via email instead of publicly.
• The increases come as Canva prepares for an IPO and follows recent acquisitions, including Serif and Leonardo.
Main AI News:
Canva, the design platform renowned for its user-friendly interface, is implementing notable price increases, attributing part of the rise to the growing costs of integrating generative AI. In the U.S., some Canva Teams subscribers on legacy plans are seeing the price for a five-person plan jump from $119.99 per year to $500 annually. However, Canva offers a temporary 40% discount for the first year to ease the transition. In Australia, the previous flat rate of $39.99 AUD per month (around $26) for up to five users has shifted to $13.50 AUD per user.
For individual Canva Teams users, the pricing has been revised to $100 per year per person or $10 per month, with a minimum of three users required. While these new rates were applied earlier for new customers, they are now being imposed on existing customers who previously enjoyed lower, grandfathered prices. These increases do not affect Canva’s Pro and Enterprise tiers.
These price hikes have sparked frustration among users, especially as Canva prepares for its much-anticipated IPO. Customers are particularly displeased with the company’s choice to communicate the changes via email rather than issuing a public announcement, which has been Canva’s typical approach in the past. This shift departs from Canva’s initial image as a low-cost alternative to design giants like Adobe. The price changes could also be tied to the company’s rapid expansion. In March, Canva acquired the U.K.-based design software company Serif for approximately $380 million, followed by its August purchase of generative AI firm Leonardo.
Conclusion:
Canva’s sharp price hikes represent a strategic shift from its original positioning as a budget-friendly alternative to majordesign software. These increases likely signal that Canva is positioning itself to enhance revenue streams in preparation for its upcoming IPO. The integration of generative AI and acquisitions such as Serif and Leonardo show Canva’s aim to expand capabilities and compete with established industry leaders. However, the substantial price changes may alienate a portion of its user base, particularly smaller businesses and freelancers who rely on Canva’s affordability. It may open opportunities for competitors to capture dissatisfied customers, potentially reshaping the competitive landscape of design software.
