Online Design Platform Canva Valued at $40 Billion

Australian-bred graphic design platform Canva was valued at $40 billion after a $200 million private equity investment. This makes it one of the biggest privately owned businesses in the world.

According to CB Insights, Canva is now the fifth-most valuable start-up globally. It’s behind TikTok owner ByteDance, Stripe, SpaceX, and Klarna. Its co-founders are now also among the top ten wealthiest people in Australia.

Melanie Perkins and Cliff Obrecht founded the business in 2013. Together, they own roughly 36% of the company. However, they recently announced their plan to give away a majority of their stake to charities—about 30% of the business’ wealth.

Along with that announcement, the business provided some statistics.

For example, it explained that it now has over 60 million users in 190 countries. Among these are 500,000 paying customers, including massive firms like American Airlines, Zoom, and PayPal.

Brick and Mortar to an Online Order

The adoption of Canva has quadrupled over the past 12 months, reveal firm reports.

The company credits this to the increasing home office culture, with businesses adopting hybrid models or complete remote working.

eCommerce and digitalization of businesses have been growing over the past few years. Global lockdowns simply accelerated this process.

Statistics show that the aesthetic and functional design of sites play a big role in how receptive users are to them.

For that reason, businesses of all kinds take advantage of web design platforms to fine-tune the look and feel of their services. With them, workers can collaborate on projects online, nixing the need for in-person meetings.

It’s also important to note the needs of smaller organizations. Many small brick-and-mortar businesses were rendered inoperable by lockdowns. Shifting to ecommerce in order to survive is a viable option.

Many of these companies have little experience with web design because they’ve never needed it. Platforms like Canva give them readily available tools and templates to work with.

All these factors explain the impressive growth of Canva and other businesses alike. The increase in investments and its valuation are a logical outcome of that.

ABOUT AUTHOR

Garan is a writer interested in how tech reshapes the environment, and how the environment reshapes tech. You'll usually find him inoculating against future shock and arguing with bots.

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