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Business Operations Business Models

How Does Canva Make Money (Business and Revenue Model)

The Canva business model

How Does Canva Make Money?
Here’s what you should know:
  • What is Canva, and how does Canva work?
  • How does Canva make money?
  • Subscription Service
  • Canva Print
  • Canva’s Subsidiaries, Acquisitions, and Exits
  • Canva’s profit and revenue
  • What is the Canva business and revenue model?
  • Canva’s funding and valuation

How does Canva make money if it’s free to use? Here is a full, in-depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Canva business model, their profit and revenue, and how Canva works.

What is Canva, and how does Canva work?

Canva is a graphic design platform that provides user-friendly design tools for designers and non-designers to create.

Founded in 2013 by Melanie Perkins, Cliff Obrecht, and Cameron Adams, Canva now has more than 60 million monthly active users using its service.

How Canva works is: To use Canva’s services, users must first create an account. Once signed up, Canva offers a free tier to its users. But if they want additional features and functionality, users have the option to upgrade their account to one of Canva’s paid subscription plans, Pro or Enterprise.

Some of Canva’s competitors include Adobe and other graphic design services.

Canva App in Apple App Store | Canva Business Model | How Does Canva Make Money?
Source: Apple App Store | Canva

How does Canva make money?

According to Canva, Canva has more than 60 million monthly active users using its service. Of which, is reportedly 3+ million paying customers. So how does Canva make money off of all those users?

Below is a breakdown of how much money Canva makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways of how Canva makes money (in 2021):

Canva has a revenue model that makes money in two (2) ways – subscriptions and Canva Print.

#1. Subscription Service

Canva makes the bulk of its money from its subscription service.

While Canva offers a “freemium” tier to their subscription service, the company also has two (2) paid subscription plans for their services, they are: Pro and Enterprise.

Each of which comes with its own set of perks like access to over 100+ million stock images and videos, 610,000+ templates, 100GB+ of cloud storage, and more.

It’s reported that Canva has over 3 million paying users. Of which, include brands like HubSpot, Warner Music Group, and American Airlines.

Canva Pricing:

  • $0 to $1,500+ per month (depending on plan and team size)
Canva Pricing | Canva Business Model | How Does Canva Make Money?
Source: Canva

#2. Canva Print

In addition to subscription revenue, Canva also makes money through Canva Print.

Canva Print is a service that allows customers to personalize and order custom prints on anything from t-shirts to postcards to business cards and more. (The full list of things Canva can print on can be seen here).

Canva Print pricing can range from a few dollars to a few hundred dollars depending on the order quantity, material, etc.

Canva Print | Canva Business Model | How Does Canva Make Money?
Source: Canva

Canva’s Subsidiaries, Acquisitions, and Exits

To date, Canva, Inc. has made a total of 5 acquisitions.

Acquisitions
Source: Crunchbase

Canva’s profit and revenue

In 2020, Canva reported around $500 million in revenue.

Note: Because Canva, Inc. is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Canva business and revenue model?

Canva makes money through a few revenue models that they combine within their company, they are:

  • Subscription based business model
  • Freemium (upselling) business model
  • Fee-for-service (FFS) business model
  • Transaction based business model
  • Mergers & acquisitions (M&A) business model

Canva’s funding and valuation

According to Canva’s Crunchbase profile, Canva has raised $572.6 million over 16 rounds and has a valuation of $40 billion as of September 2021 according to Forbes.