Canva raises prices for teams plans, citing generative AI tools

Canva, the design platform, has significantly increased prices for its Teams plans, citing the need to reflect its expanded suite of generative AI tools.

In the U.S., the cost for a five-person Teams plan has surged from $119.99 per year to $500 per year, although customers will receive a 40% discount for the first 12 months.

Australian customers will see the flat monthly rate of $39.99 AUD replaced with a $13.50 AUD per-user fee, applicable to a minimum of three users.

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The price hikes are being applied to customers on older pricing plans, following a quiet change earlier this year for new customers.

Individual users on the Teams plan will now pay $100 annually or $10 monthly per person. However, the changes do not affect Canva’s Pro or Enterprise tiers.

A Canva spokesperson explained that the price adjustments reflect the company’s expanded product offerings and noted that previous pricing had remained unchanged for four years. The increase comes as Canva prepares for an IPO, following recent acquisitions of U.K.-based graphic design firm Serif and generative AI image company Leonardo.

The move has sparked backlash, particularly due to Canva’s decision to communicate the changes via customer emails rather than through a public announcement. This development marks a shift from Canva’s earlier positioning as a cost-effective alternative to traditional design software.