Australian graphic design tools startup Canva Pty. Ltd. announced new funding of $ 200 million to accelerate its growth, including increasing its workforce.
T. Rowe Price led the fundraising round. Other investors included Franklin Templeton, Sequoia Capital Global Equities, Bessemer Venture Partners, Greenoaks Capital, Dragoneer Investments, Blackbird, Felicis and AirTree Ventures. The round was lifted at a valuation of $ 40 billion, making it one of the most valued startups in the world.
Founded in 2012, Canva is a graphic design software solutions provider that helps users design presentations, social media graphics, and more with various layouts, images, photo filters, icons, shapes, and fonts. The company’s platform combines a drag-and-drop design tool with a library of photos, illustrations, and images.
The company says it now has more than 60 million monthly active users, up from 50 million when it last raised venture capital in April. This year’s revenue has more than doubled and is on track to surpass $ 1 billion in annualized revenue by year-end while generating positive free cash flow.
Canva’s user community has created over seven billion designs, with 120 new designs created every second using Canva’s library of over 800,000 templates and over 100 million design ingredients.
“Visual communication has become a universal need for teams of all sizes in almost every industry,” Canva co-founder and CEO Melanie Perkins said in a statement. “More than 60 million people now use Canva for everything from launching startups and raising awareness in nonprofits, to distance learning, collaborating in distributed teams and managing corporate brands. global large-scale enterprise.
The valuation of the round is quite remarkable. Not only is Canva now more valuable than Telstra Corp. Ltd, Australia’s largest telecommunications company, but is now the fifth most profitable startup in the world. The Age reports the only startups with a higher valuation at TikTok owner ByteDance Ltd., Stripe Inc., SpaceX Inc. and Klarna Bank AB.
Being nine years old, booming, and taking on even more funding, the next question for Canva is whether it intends to go public, and if so, when. It was reported in April that there was no imminent discussion about Canva seeking to go public on the Australian Stock Exchange, but just over four months later, it’s an issue worth considering.
The Australian Finacial Review notes that one problem with Canva’s IPO is its valuation – at $ 1 billion ARR, the valuation of $ 40 billion is a multiple of 40 times revenue. As such, the company could struggle to match the $ 40 billion valuation on an initial public offering. “The word on the street is that Canva should be prepared to accept a substantial discount on its current valuation if it were to be listed now, so why not just wait?” adds the report.
Including the new funding, Canva has raised $ 572.6 million to date.
Photo: hanuska / Flickr
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