Canva Nears Completion of a Massive $1.5 Billion Share Expansion Deal

Canva Nears Completion of a Massive $1.5 Billion Share Expansion Deal

Australian tech firm Canva Inc. is on the brink of finalizing a significant share sale, poised to bring in over $1.5 billion. This development is based on insights from knowledgeable individuals. This transaction involves a group of investors, encompassing current and former Canva employees.

It’s expected to maintain the company’s valuation at about $26 billion, mirroring its previous funding round. Notably, Canva isn’t seeking fresh capital in this round but is working alongside Goldman Sachs Group Inc. for the transaction.

Canva’s financial performance has been impressive, with over $2 billion in annualized revenue reported in 2023. However, these figures haven’t been publicly confirmed, as those familiar with the situation prefer anonymity due to the private nature of the information.

Competition and User Growth

Canva is intensifying its rivalry with Adobe Inc., particularly with both companies recently introducing artificial intelligence features. Adobe, a long-standing leader in graphic software, faced setbacks with the collapse of its $20 billion deal to acquire Figma, another competitor in the field.

Canva’s platform, known for its appeal to small businesses and Generation Z users, has evolved since its inception in 2013. Recently, it has been reaching out to bigger enterprise clients, with companies like FedEx Corp., Starbucks Corp., and Zoom Video Communications Inc. adopting its services.

Currently, Canva boasts 170 million monthly active users across 190 countries. Its growth and expansion have attracted investors such as Franklin Templeton, Bessemer Venture Partners, and Blackbird Ventures.

As of now, discussions are still in progress, and the specifics of the deal might change. Representatives for both Canva and Goldman Sachs have chosen not to comment on these developments.