Australian-owned graphic design software operator Canva is drastically raising its prices, in a move it says is justified as a result of increasing investment in AI.
First reported at The Verge, the price of some Canva subscriptions will skyrocket next year, in some cases over 300 percent for many users.
Global customers for Canva Teams — which is the company's business-orientated subscription that supports multiple users — have been told to expect prices to increase.
Canva says the increase is justified due to the “expanded product experience” and value that generative AI tools have added to the platform.
It says the the change will help it continue to build 'ground-breaking' products like its Canva Create announcements, Visual Suite, Magic Studio, and Brand Tools.
In Australia, the subscription fee for Canva Teams was previously a flat fee of $39.99 per month or $479 a year for up to five users. Now, this will increase to $13.50 per month, per user, with a minimum of three users, i.e, $40.50 in total for all three users, or $486 a year.
For a team of five, Canva will now set users back $67.50 per month or $810 a year - an increase of $27.51 per month.
For smaller Teams accounts, there's also an increase - our own 2-person minimum plan is set to shift from $248.87 a year to $270.
It's worth noting that the increases, so far at least, are just to Teams accounts, however with many businesses using Canva this is likely to be the most lucrative part of the company's user base.
That said, a Canva spokesperson told us that impacted customers will receive 12 months at 30% discounted pricing before the new pricing plan takes effect.
The company also said that customers who are receiving price change notifications are on 'legacy' pricing which has been unavailable to new customers for some time.
"This pricing reflected the early stage of the product when it launched in 2020 and has remained unchanged since then," the spokesperson said.
Despite this, on Reddit, users reacted with a mixture of disbelief and scorn at the increases.
"Your platform is good, but it ain't $480 a year good! Whoever thought this was a great idea has no understanding of how many free tools there are for us creators. See ya!," said one user.
The move comes following Canva's acquisition of the Affinity suite of creative software, its biggest acquisition to date, in March.
The deal, which was made up of a mix of cash and stock, was valued at “several hundred million pounds,” Canva co-founder and Chief Operating Officer Cliff Obrecht said in an interview at the time.
Since then, the company has also acquired generative AI startup, Leonardo, for a reported $320 million USD, and plans to go public in the United States in 2026.
Canva remains one of Australia's most successful tech darlings. CEO Cliff Obrecht and Melanie Perkins, who co-founded the company together, were named by the Australian as one of the 10th richest people in Australia, with a combined wealth of $10.92 billion.