Canva Defends 300% Price Hike After

Launching Powerful AI Features

 

 

Canva raised prices by over 300% for business users after launching new AI tools like Magic Replace and Magic Edit. Discover why the company claims the change is justified and what it means for users.

Canva’s AI-Powered Transformation Comes at a Steep Cost

Canva, the widely used graphic design platform, is facing criticism after significantly increasing its subscription fees. The company recently introduced several advanced AI features, and in tandem, announced a major price rise for Canva Teams its business-focused offering.

Some users reported price hikes of over 300%, with annual subscription costs jumping from $119.99 to $500. Although Canva offers a 12-month discounted period before the full increase kicks in, the spike has still raised eyebrows.

Mixed Reactions from Users

Canva users expressed their frustration online, particularly over how the pricing news was communicated. One customer on Threads called it “maybe not the best communication strategy,” while another described the hike as “one of the biggest increases I have ever seen YoY.“

The price changes are global, though the exact amounts vary by country. In Australia, for example, the monthly cost for five users will rise from $39.99 to $67.50, which breaks down to $13.50 per user per month.

Canva Justifies the Increase

Despite the backlash, Canva defended its decision. A company spokesperson told ITPro that the price increase reflects years of development and an expanded suite of tools.

“Our original pricing reflected the early stage of this product and has remained unchanged for the last four years. We’re now updating the price for customers on this older plan to reflect our expanded product experience,” the spokesperson said.

While acknowledging that pricing changes are “not always easy,” Canva reassured customers that the discounted transition period would help soften the impact.

What’s New in Canva’s Product Range?

The price hike comes shortly after the company’s Canva Create 2023 event, where it unveiled a host of AI-powered features designed to go beyond traditional graphic design.

Canva is now positioning itself as a full workspace solution for various departments like marketing, sales, human resources, and creative teams. These updates are part of Canva’s broader strategy to compete with business-grade tools from platforms like Adobe, Microsoft, and Google.

New AI Tools: Magic Edit, Eraser, and Replace

Among the newly released AI features are:

• Magic Replace: Updates outdated logos or design elements across multiple templates automatically.

• Magic Eraser: Removes unwanted elements from an image with a single click.

• Magic Edit: Replaces a selected visual element with another using generative AI.

These additions are designed to help businesses streamline their branding, accelerate production, and minimize manual work.

A Strategic Move or a Risky Bet?

By aligning its prices with a much broader product scope, Canva appears to be targeting enterprise clients willing to invest in scalable AI-enhanced tools. However, such a significant price jump could alienate small businesses and freelancers—once Canva’s core user base.

Only time will tell if the value added by these AI tools will justify the higher cost. For now, the company is betting that businesses will recognize the productivity gains and stick around despite the price surge.

Canva Evolves, but Will Users Stay?

The new AI features undeniably enhance Canva’s capabilities, transforming it from a design platform into an intelligent workspace suite. However, rolling out these features alongside a steep pricing adjustment poses a clear challenge.

Customers now face a choice: embrace Canva’s AI evolution or seek more affordable alternatives. Either way, this move marks a turning point in how AI is reshaping the SaaS landscape.

 

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