Canva is significantly raising prices for its Teams product, attributing the increase in part to the development of generative AI tools. 

In the U.S., some subscribers on older pricing plans are seeing their rates for a five-person plan soar from $119.99 per year to $500 per year, although there's a 40% discount for the first 12 months. In Australia, the previous flat fee of $39.99 AUD (approximately $26) per month for up to five users has been increased to $13.50 AUD per user.

For individual users, the new pricing for Canva Teams is now set at $100 per person annually or $10 per month per person, with a minimum requirement of three users for a Teams plan. These price changes were initially implemented for new customers earlier this year, but they are now extending to existing customers who had been paying lower rates.

The price adjustments do not affect Canva’s Pro or Enterprise tiers. A Canva spokesperson confirmed the new pricing to TechCrunch, emphasizing the expanded suite of generative AI tools, such as Magic Studio, as a key reason for the adjustments. They noted that many customers had been on outdated pricing plans, as Canva had previously changed its Teams pricing to $10 per month per user earlier this year.

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

This price increase is among the most substantial year-over-year hikes observed. Users have expressed dissatisfaction, particularly regarding how Canva communicated these changes through emails rather than publicly, as they have done in the past.

The new pricing is a departure from Canva’s roots as an affordable alternative to design software like Adobe’s. It may also be a reflection of the startup growing too quickly, too fast; in March, Canva acquired U.K.-based graphic design software firm Serif for ~$380 million and just in August bought generative AI image company Leonardo.

Correction: A previous version of this article misstated the Canva Teams price for Australian customers. It is $13.50 per user per month, with a three-user minimum.