Graphic design software company, Canva is now worth a whopping $6 billion dollars. The valuation came after Canva announced that it raised Canva $60 million in new funding in what represents booming business amid the global pandemic.
The new investment values Canva at nearly double its October 2019 valuation of $3.2 billion. The funding was led by Blackbird and Sequoia China, with participation from Bond, Felicis, and General Catalyst who are also previous investors. It will provide the design company with more cash reserves as it deals with the pandemic.
Canva’s co-founder Cliff Obrecht said the company chose to raise with previous investors because of its trust in those relationships. The company also plans to expand and consider potential acquisitions.
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“With the amount of capital we brought on, we were well over ten times over-subscribed. We could’ve raised $2 billion, but I think that would have been a really stupid thing to do,” Obrecht said.
The pandemic did not particularly hurt Canva’s business overall. Usage of its collaboration and video tools increased, and small businesses started using the app to make designs to reach their customers over social media. According to the company, design creation and sharing on its app also increased by more than 50% since the start of the pandemic.
The company says it is doubling its paid user base. It has more than 500,000 organizations and 1.5 million paid subscribers on its paid account version, Canva Prov and over 30 million people also use Canva every month. Canva says about 90,000 schools and universities, 55,000 non-profits use its services. It also has big corporation accounts like American Airlines, Hubspot, and Warner Music.
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