Canva has announced a major employee stock sale and is preparing for an IPO, with its valuation reaching $42 billion in 2025, reflecting strong growth and investor confidence.

This valuation marks a more than 30% increase from its previous valuation of €34 billion in 2024, driven by impressive financial performance and expanding user base.

Following its rival Figma's recent IPO in New York City, Canva's own plans for going public are gaining momentum, with analysts estimating a potential valuation between $195 billion and $210 billion based on comparable SaaS multiples.

Canva's competitive edge lies in its full-stack AI approach, including proprietary models like Phoenix and native AI tools such as Magic Write, Magic Design, and Magic Edit, which boost user productivity and creativity.

Compared to peers like Adobe and Figma, Canva boasts a larger user base of 230 million monthly active users and a comprehensive AI-first strategy targeting both individual and enterprise markets.

Its product-led growth model, combining a freemium approach with AI features, has driven rapid growth to over $3 billion in annual recurring revenue, with enterprise clients including 85% of Fortune 500 companies.

Canva's AI innovations, such as the Dream Lab feature powered by Phoenix, have resulted in 800 million monthly AI interactions by mid-2025, demonstrating strong user engagement and validation of its AI-driven strategy.

The company has strategically acquired AI startups like Leonardo AI to enhance its growth, transitioning from a consumer platform to an enterprise-grade SaaS provider focused on automation, brand management, and collaboration.

Investors view Canva as a high-conviction opportunity due to its solid unit economics, AI differentiation, and widespread enterprise adoption, despite valuation sensitivities to market fluctuations.

Founded in 2013 in Sydney, Canva has become one of Australia's most valuable companies, supporting over 240 million monthly users and generating an estimated annual revenue of €2.8 billion.

Canva's rapid growth and $42 billion valuation in 2025 reflect its strategic AI integration and leadership in democratizing creative tools worldwide.

While Canva has not officially confirmed its IPO plans or valuation, market dynamics and macroeconomic conditions will influence its timing and valuation trajectory, with potential risks including competition and operational challenges.