Canva doubles valuation to $6b after raising $60m

Australian digital design unicorn Canva announced it has secured US$60 million in a funding round led by Blackbird Ventures and Sequoia Capital China, doubling its valuation from US$3.2 billion as of late last year to US$6 billion.

The round also saw participation from Felicis Ventures, Bond Capital, and General Catalyst.

Screenshot credit: Canva

Founded in 2012, Canva lets users easily create designs for social media posts, logos, and presentations, among others. It also offers a business-oriented product called Canva for Enterprise.

Canva will use the latest capital injection to double down on its education and enterprise products as it expands further in the US and other key markets, the company told Tech in Asia.

How much traction has it gotten? Since the start of the pandemic, Canva said it continues to see “a significant increase” in user activity, which has jumped by over 50%, as people continue to design and collaborate online.

For its print business, however, it had seen a 75% drop in revenue before bouncing back, with its core revenues seeing 30% growth on average, according to a report by CNBC.

According to Canva, its platform currently serves over 30 million people globally every month, with 80 designs per second or a total of over 3 billion designs created to date.

And since launching late last year, its workplace collaboration suite has attracted more than 500,000 businesses, over 90,000 schools and universities, and 55,000 nonprofits. Some of its paying clients include Warner Music, American Airlines, International Data Corporation, HubSpot, and Baxter International, among others.

Canva said it has been cash flow-positive since 2017, with a US$1.2 million net profit on US$25.1 million revenue.

“Being profitable has ensured we can weather uncertainty, including the current downturn being experienced across the globe,” the company noted.

What are its future plans? With its fresh funding, Canva said it will be investing in its operations in the US, where it’s up against the likes of Adobe and Microsoft.

With a new office in Texas, its US team will provide strategic support for its enterprise clients, kicking off with Elevate 2020, its inaugural online enterprise conference, in July.

To further its international growth, the unicorn will also look at potential acquisitions and investments, particularly in the media and editing spaces, for the company’s engineering and product teams.