With great technology comes great power. And apparently, so too comes significant price hikes. The price of some of Canva’s subscriptions is slated to increase by around 300%.
As reported by The Verge, some Canva users have received emails alerting them to an impending price increase for certain plans. Canva has attributed the increased fees to the company’s need to spend more on software development, including the company’s push into artificial intelligence (AI) design tools and features.
The company’s increased costs could also relate to two major acquisitions. In July, Canva acquired generative AI startup, Leonardo, for a reported $320 million.
This expensive acquisition occurred just months after Canva bought Affinity for a reported fee of $380 million. This move brought professional creative software into Canva’s portfolio, including Affinity Photo, Designer, and Publisher.
While Canva has been doing very well in a market once dominated by Adobe Express, Affinity’s software suite offers Canva a way to take on Adobe’s professional users, too. So far, Canva hasn’t changed Affinity’s pricing structure, which currently includes lifetime licenses, but the company reserves the right to change that at any time.
As part of Canva’s price changes, the business-oriented Canva Teams subscription will shift from $15 per month for five users — $180 annually — to $500 per year. This is a nearly three times increase. This will be partially offset by a 40% discount for the first year but is still a sizable price hike.
Canva price increase is one of the biggest increases I have ever seen YoY. pic.twitter.com/8MOEYMcRm3
— Will Sanders (@wlsndrs) August 30, 2024
Others have reported an even more considerable price increase, including Canadian Jenna Harding, whose subscription fees will go from $150 to $650, a more than four times price increase.
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“I think I might be letting go of this service soon,” Viviana Castrillon Olave, founder of marketing consulting agency VICA Marketing, tells Financial Review. “I have been using Canva for as long as I can remember, and it’s a fantastic tool. Even though I’m not a graphic designer, I often need to create visual content to explain, brainstorm, and present the plans or strategies I develop for my clients.”
“I understand the reason behind the price increase, especially with all the new technology Canva is implementing, but the increase should be more gradual,” she adds.
Canva’s price increases have riled users on Reddit, too.
“I just received this email. Our price would be going from $119.99 / year to the discounted $300.00 / year for the first 12 months. After this, the subscription will increase to $500.00 / year. This is INSANE,” writes a Reddit user.
Another adds, “What a joke. Cancelling my Teams plan.”
“I just got the same email and sent them some extremely angry feedback. Nearly DOUBLING our costs for absolutely no big new features is INSANE. Infinite growth demands create infinite greed, I will be taking my business elsewhere,” writes Reddit user Emmas_thing.
One Redditor points out an obvious comparison — Adobe. The company angered many users more than a decade ago when it moved to a subscription model, which increased the effective software cost for many. However, even if some users cancel their Canva plan, the increased revenue from those who remain could more than offset the loss of users. As upset as people were with Adobe, the company has continued to rake in record revenue year after year.
It is important to hammer home that Canva’s price hikes are so far limited to Canva Teams subscribers — not users with Pro and Enterprise plans. Further, although communicated in recent weeks via email, the price increases result from a quieter change this spring.
“Some of these accounts had been locked into lower prices that Canva no longer offers. In April, the company silently changed its offering for new Teams subscribers to $10 per month for each user, and set a minimum requirement for three users,” The Verge explains.
Canva’s communications lead, Louisa Green, tells The Verge that the pricing structure change reflects “the value of our expanded product experience.” Green adds, “Our suite of products has grown significantly over the last couple of years with the launch of new offerings like the Visual Suite and Magic Studio.”
The pricing change also arrives with interesting timing. Canva, an Australian company, is expected to go public in the United States in 2026, citing Australia’s small stock market and the U.S.’s “more sophisticated investors.” It should come as little surprise that a company preparing to go public would be interested in boosting its revenue. There are few quicker ways to do so than increasing prices.
