This Aussie tech darling is now worth more than Afterpay…
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It seems like only a few months ago that Canva was raising capital and fetching a US$15 billion ($20 billion) valuation, and that would be because it was. Now the graphic design platform is back at it again with an eye-watering valuation.
According to reports, the company is tapping investors for US$71 million in its latest funding round.
Canva valuation would put it in ASX 20
There is no doubt Canva’s valuation rise is nothing short of meteoric. Towards the end of 2019, the company commanded a valuation of US$3.2 billion. Since then, multiple funding rounds have seen its valuation jump to US$6 billion last year, and US$15 billion a few months ago.
In April, the company raised US$71 million in funding from big-name institutional investors such as T. Rowe Price, Blackbird Ventures, and Dragoneer. At this stage, the participants of Canva’s latest funding round are not known.
If the rumours are correct, the company’s latest funding round would value the company at US$30 billion ($40 billion). That would put Canva within the top 20 companies in the S&P/ASX 200 Index (ASX: XJO).
However, unlike the abovementioned companies, Canva is not listed on the ASX. Surprisingly, there has been little to indicate the co-founders’ (Melanie Perkins and Cliff Obrecht) plan on taking it public anytime soon.
Growth in numbers
The sky-high valuations are being backed by the company’s rapid growth metrics. For instance, monthly active users were said to have doubled in April to 55 million.
Looking at the platform’s web traffic, total visits have increased ~29% from 194.5 million in January 2021 to 251 million in June 2021. Those figures exhibit a continuation of growth at scale.
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Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.