Canva increased the rates on its Teams product

The design platform Canva is dramatically increasing prices for some customers, and she believes part of the decision is down to generative AI. In the US, some Canva Teams subscribers on older plans have seen their five-person plan price reduced from $119.99 per year to $500 per year (a 40% discount for the first 12 months), while in Australia, the flat rate of A$39.99 (roughly $26) per month for five users has increased to A$13.50 per user. Canva Teams currently costs $100 per person, or $10 per person per month, with a minimum of three people required for the Teams plan. These prices were quietly changed for new customers earlier this year, but the company is now changing the prices for customers who previously paid a lower price. The pricing changes do not apply to Canva Pro and Enterprise tiers.

 Canva spokesperson confirmed the new pricing guidance and pointed to the growth of the company's suite of generative AI tools, which includes Magic Studio, as the reason for the adjustment. They also noted that some Canva customers were locked into a lower price that Canva no longer offers. Canva quietly changed the price of Teams to $10 per user per month earlier this year.

"Our original pricing reflects the early stages of this product and has not changed in the last four years," the spokesperson said. "We are now updating our pricing for customers on this legacy plan to reflect an improved product experience. Canva's price hikes, which come as the company prepares for its IPO, have understandably not been well received. Users are particularly upset that Canva communicated the changes to customers via email rather than publicly, as it has done in the past. The new prices mark a departure from Canva's roots as an affordable alternative to design software like Adobe, and it may also reflect the startup growing too fast: Canva acquired British graphic design software company Serif in March for about $380 million and AI-generated imagery company Leonardo in August.