Australian design software company Canva has launched an employee stock sale that values the firm at $42 billion, the company announced today. The program comes as the company gears up for a widely anticipated initial public offering (IPO), expected later this year. The share sale allows employees to sell their stock to both new and existing investors, providing liquidity to long-term staff while reaffirming confidence in the company’s growth trajectory.
The round is being led by long-time shareholder Fidelity Management, while JPMorgan’s asset management division is joining as a new investor. It is said that this funding round was significantly oversubscribed. While the exact number of shares to be sold has not been disclosed, earlier reports suggested that Canva had explored selling up to $500 million worth of shares.
Over the years, Canva has attracted prominent investors, including T. Rowe Price, Sequoia Capital, and Bessemer Venture Partners. With the latest share sale, the company has reclaimed a higher valuation compared to its most recent figure of $32 billion in 2024, though still slightly below the $40 billion peak valuation it reached in 2021.
Anticipated IPO plans
Canva’s IPO has been long anticipated, having hinted at a possible listing in 2025. The company has taken steps to prepare for this move, most notably by hiring Kelly Steckelberg as Chief Financial Officer in 2023. Steckelberg previously served as CFO at Zoom, where she played a pivotal role in taking the company public. Her appointment is widely viewed as a strategic move to guide Canva through the IPO process.
Leading online design platform
Founded in 2012 by Melanie Perkins, Cliff Obrecht, and Cameron Adams in Sydney, Canva has grown into one of the world’s leading online design and publishing platforms. Its tools are now used in 190 countries, with more than 240 million monthly active users.
From wedding invitations and birthday cards to social media graphics and corporate presentations, Canva provides simple, web-based design solutions to both individuals and enterprises. The platform has become an indispensable tool for users seeking professional-quality design without requiring deep technical expertise.
Canva has reported annualised revenue of nearly $3.3 billion, positioning itself among the most successful privately held technology companies. The company has recently invested heavily in AI, introducing features that allow users to generate designs and interactive elements using plain English commands. These AI-powered tools represent its strategy to stay ahead of competitors and strengthen its product offering ahead of a public listing.
Competitive landscape
Canva’s path to public markets comes at a time of heightened competition in the design software space. Its US-based rival Figma went public last month, achieving a $47.9 billion market capitalisation on its first day of trading. Figma’s shares surged 250% from their listing price of $33, highlighting strong investor enthusiasm for design-focused technology companies. Canva’s trajectory will likely be measured against this benchmark as it moves closer to its own IPO.
