Canva has reversed its decision to raise prices by up to 300% for long-term customers, responding to backlash from small businesses and other users.
Initially, the Sydney-based design software company, valued at $US25.6 billion ($38 billion), planned to discontinue a subscription package allowing multiple users under one plan. The new plan would have charged a flat rate of $US10 per person per month. This change meant that some Australian users’ annual bills would increase from $165 to $405 in the first year, and then to $675 later on.
The plan was met with anger, particularly from Australian customers using Canva to create presentations, social media, and marketing materials. Small businesses were especially vocal, with some threatening to cancel their subscriptions due to the sudden price increase.
In response to the criticism, Canva published a blog post stating that the new pricing model would now only apply to new customers, allowing existing users to keep their current prices as a “thank you for their loyalty.” Canva emphasized that listening to its community is central to its business philosophy and acknowledged the frustration the sudden changes caused, especially for early adopters.
AI Features Leads to Price Changes
The price hike was initially introduced in September as part of a broader adjustment to Canva’s “Teams” product, which is aimed at businesses. The company had planned to raise the subscription cost in the U.S. from $US120 ($178) per year for up to five users to $US300 for the first year, then $US500. This represents an increase of more than 300%.
In Australia, the flat fee of $40 per month for up to five users was set to shift to $13.50 per user, leading to a nearly 70% cost increase for teams of five. Canva explained that the higher prices reflected the added value of its expanded product lineup, which now includes AI-powered tools like Visual Suite, Magic Studio, and Brand Tools.
Despite these reasons, long-time customers criticized the price changes, citing concerns about being priced out of the platform. Many pointed to the fact that Canva built its success by offering an affordable, user-friendly alternative to Adobe’s design software. Chris Kernaghan, an app designer, remarked in a blog post that Canva’s strategy risked alienating the smaller teams that helped the company grow by promoting its tools. He emphasized that these teams had been strong advocates of Canva and contributed to its widespread use through word-of-mouth.
Canva Revises Pricing Strategy After Backlash
In response to the growing backlash, Canva announced two key changes: first, early Canva Teams adopters would keep their original discounted pricing, and second, Canva introduced a “pricing promise” to ensure more transparency in the future.
The “pricing promise” includes:
- A guarantee of at least 60 days’ notice before any price increases.
- Commitments to maintaining fair and regionally sensitive pricing.
- A pledge that Canva’s offerings will remain “value-packed” and “always affordable,” with no hidden fees.
Canva also reiterated that it would continue to offer free plans for individuals, nonprofits, and schools.
The reversal of the price hike comes as Canva continues to expand its product offerings and user base. The company, which employs more than 4,500 people globally (most of whom are based in Australia), now has over 190 million monthly users. Canva has been heavily investing in AI features to strengthen its design platform and remains competitive against industry giants like Adobe and Figma.
In July, Canva acquired Leonardo, a Sydney-based AI image generation startup, for $US250 million. The company reported $US2.3 billion in annualized revenue and is widely expected to pursue a public listing in the U.S. by 2026, with many anticipating that it will list on the Nasdaq exchange.
Canva’s rapid growth has made it one of Australia’s leading tech companies, even as the tech industry globally has faced downturns in recent years. With a valuation now estimated at $US39 billion ($58.9 billion), Canva is expected to remain a major player as it continues to introduce new features and tools for its expanding user base.
