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Canva initiates stock sale at $42B valuation amid IPO push
20 Aug 2025

Australian design software start-up Canva has launched an employee stock sale at a whopping $42 billion valuation.

The move marks a major jump in value for the company, which is betting on artificial intelligence (AI) to drive its growth.

The stock sale gives employees an opportunity to sell their shares to new and existing investors, including Fidelity Management & Research Co. and JPMorgan Chase & Co.'s asset management arm.

Canva's valuation rises by over 30%
Valuation boost

The stock sale has pushed Canva's valuation by over 30%, from $32 billion.

The company is investing in AI enhancements to its design tools, hoping to boost revenue growth and prepare for a potential initial public offering (IPO).

In April, it launched new products such as a conversation-based AI photo editor, aiming to lure corporate customers away from rival Adobe Inc.

Competition in design software space
Market rivalry

Canva is up against Adobe, the maker of Photoshop and Lightroom, in a battle for users. Adobe is working on its own AI model, Firefly, for its apps.

Another strong competitor is San Francisco-based Figma Inc., which is valued at $34 billion.

Despite the competition, Canva's Chief Operating Officer and co-founder, Cliff Obrecht, said this round has been significantly oversubscribed.

Canva has over 240 million monthly active users
Business expansion

Founded in 2013, Canva has gained popularity for its user-friendly platform that lets users create everything from wedding invitations to social media posts.

The company now boasts over 240 million monthly active users and more than $3.3 billion in annualized sales.

The employee stock sale is a common practice among start-ups to reward and retain staff while attracting external investors at the same time.