Canva, the Sydney-based design software maker cofounded by billionaire couple Cliff Obrecht and Melanie Perkins, this week launched an employee share sale valuing the company at $42 billion.
A signage of Canva Inc. at the company’s headquarters in Sydney, Australia, on Tuesday, Sept. 17, 2024. Photographer: Brent Lewin/Bloomberg
The latest funding round was led by existing investor Fidelity Management & Research Co. and new investors J.P. Morgan Asset Management and its funds U.S. Equity Group and Growth Equity Partners, Canva said in a statement released on Wednesday.
“This round has been significantly oversubscribed, which is a huge testament to the incredible work of our team and the impact Canva is having around the world,” Cliff Obrecht, chief operating officer of Canva said in the statement released on Wednesday. “The overwhelming demand from both new and existing investors is a huge vote of confidence in our momentum and the scale of what still lies ahead.”
Canva has over 240 million monthly users and generates $3.3 billion in annual revenue from 27 million paid customers. The company claims it has strong cash reserves, and has been profitable for eight years. It recently launched AI tools for video and design generation that have already been used more than 20 billion times, making it one of the fastest-growing AI products.
“We believe that Canva stands out in the design sector and can help create long-term value for investors,” Felise Agranoff, portfolio manager of J.P. Morgan Asset’s U.S. Equity Group said.
Obrecht and Perkins—who cofounded the company in 2013—have a combined net worth of $11.6 billion according to Forbes’ real-time data. The couple has pledged to transfer more than 80% of their stake to the Canva Foundation for charitable causes.
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