- Graphic design leader Canva plans a $1 billion secondary stock sale.
- Canva boasts over 170 million users across 190 countries and achieves 90% Fortune 500 adoption of its premium Teams product.
- This secondary offering provides Canva investors an exit ahead of any eventual IPO targeted for 2025 or beyond.
According to a recent report by The Information, Canva, the Sydney-based graphic design platform company, is preparing for a large secondary stock sale to value the firm at $26 billion.
Citing unnamed sources, the tech publication stated that Canva will allow its longtime employees and early investors to sell over $1 billion in shares in the coming weeks.
Unlike a primary issuance, the company will not raise fresh capital in the transaction.
This secondary offering comes just six months after Canva facilitated a similar stock sale for insiders at a $26 billion valuation.
The company achieved decacorn status in 2021 with a $40 billion valuation following its most recent $200 million funding round.
Canvas growth and user base
Founded in 2012, Canva quickly became one of the world’s most popular graphic design tools. Its easy-to-use interface enables novices and professionals to create visually compelling documents, presentations, infographics, and more.
Today, Canva boasts over 170 million users across 190 countries. The platform’s extensive library includes over 120 million stock images, fonts, templates, and illustrations.
Canva employs a freemium business model, offering both free and paid tiers.
Last month, the company stated over 90% of Fortune 500 firms now utilize Canva for Teams, its premium product tailored for organizational users.
Financial milestones and future prospects
In 2021, Canva was reportedly on pace to achieve $1 billion in annual recurring revenue. According to TechCrunch, that figure presently sits at $1.7 billion.
With tech IPOs rare over the past year, this secondary offering provides Canvas early backers a lucrative opportunity to liquidate their shares well ahead of any eventual public listing. Sources suggest the company won’t debut on the public markets until 2025 or later.
The upcoming transaction mirrors other outsized secondary sales in recent months, including SpaceX’s $180 billion round and OpenAI’s impending $86 billion tender offer. With private capital abundant, it seems more tech unicorns are finding alternative paths to provide investor exits.
