Canva Sparks Outrage With Steep Canva Teams Price Hike

Graphic design platform Canva is facing backlash from users following a significant price increase for its Canva Teams product, as reported by the Australian Financial Review. The change, which introduces a per-user pricing structure, has sparked accusations of being "outrageous" from long-time subscribers.

Under the new model, US-based customers currently paying $15 per month for a five-user plan will now be charged a flat rate of $10 per user, amounting to a $35 increase. Similarly, in Australia, the cost for a five-user plan will jump from $39.99 to a minimum of $40.50 for just three users.

Canva's decision comes amidst a wave of price increases from other Software as a Service (SaaS) providers, including Xero, MYOB, Quickbooks, and Adobe. This trend has left many small businesses questioning the value proposition of these services.

The company attributes the price hike to its expanding product suite, including AI-powered tools.

“Our suite of products has grown significantly in the last couple of years with the launch of new offerings like the Visual Suite and Magic Studio,” a spokesperson of Canva told the AFR. “Starting in September, the price of Canva Teams is changing for existing customers to reflect the current price of the plan and the value of our expanded product experience.”

This expansion aligns with Canva's ambitious growth strategy, evident in its recent acquisition of Sydney-based AI image generation startup Leonardo for $250 million.

This latest price increase comes as Canva prepares for a potential US IPO. The decision to list in the US was deemed "obvious" by Canva co-founder Cliff Obrecht, who stated earlier this year that Australian investors "don’t understand tech as well [compared to] higher multiples, more sophisticated investors in the US."

Canva's upcoming IPO is being closely watched as a potential bellwether for the Australian tech sector.