Canva has raised prices for its Teams product

Design platform Canva is drastically raising prices for some customers. And it’s partly blaming generative AI for the move.

In the United States, some Canva Teams subscribers on older pricing plans vision The sticker price for the five-person plan has increased from $119.99 per yr to $500 per yr (with a 40% discount for the primary 12 months). AustraliaMeanwhile, the flat monthly fee of AUS$39.99 (about US$26) for as much as five users has been raised to AUS$13.50 per user.

For individual users, Canva Teams pricing is now $100 per person or $10 per 30 days per person, with a minimum of three people required for a Teams plan. Those prices were quietly modified earlier this yr for latest customers, but the corporate is now changing the value for customers who previously paid the cheaper price.

Pricing changes don’t apply to Canva’s Pro and Enterprise plans.

In a press release to TechCrunch, a Canva spokesperson confirmed the brand new prices and cited the corporate’s growing suite of generative AI tools — including Magic Studio — as the rationale for the changes. They also noted that some Canva customers have been locked into lower prices that Canva now not offers; Canva quietly modified Teams pricing earlier this yr to $10 per 30 days for each user.

“Our original pricing reflected the early days of this product and has remained unchanged for the past four years,” the spokesperson said. “We are now updating pricing for legacy customers to reflect our expanded product experience.”

Canva’s price hikes, which come as the corporate prepares for an IPO, haven’t been well-received, unsurprisingly. Users took particular issue with the proven fact that Canva communicated the changes via customer emails quite than publicly, because it has previously.

The latest pricing moves away from Canva’s roots as a budget alternative to design software like Adobe. It can also reflect the startup’s overly rapid growth; in March, Canva acquired British graphic design software company Serif for ~$380 million, and just in August, it bought generative AI imaging company Leonardo.