Canva Considers India a Key Growth Market, Plans Local Team and Affordable Products

Design software startup Canva sees India as a major focus market due to the country's booming creator economy and rising smartphone use. In an exclusive interview with ET at Canva Create, the company's annual event in Los Angeles, co-founder and CEO Melanie Perkins discussed India plans, competition, and the role of AI in their product.

India: A Big and Growing Market

Perkins, highlighting India's position as Canva's fifth-largest and fastest-growing market with 240,000 users, stated the company's intention to build a local team. 

She believes India's flourishing creative landscape presents a significant business opportunity for Canva.

Freemium Model and Revenue Strategy

While acknowledging the popularity of their free product, Perkins emphasized India as a significant sales market. She explained their approach of offering a free tier with great value, alongside affordable paid options that address specific user needs. This "freemium" model, she believes, will be successful in India.

Affinity Acquisition and User Benefits

The recent acquisition of design software Affinity excites Canva, and they plan to offer it to Indian users. Affinity is known for its speed and professional-grade features.

Building a Local Presence

Canva currently has Indian employees and is actively hiring more. They plan to establish a physical presence in India as the need arises, following their strategy of large offices in key locations with satellite hubs.

Enterprise Strategy: Beyond Sales Teams

Perkins explained that Canva prioritizes a product-led approach over traditional sales teams. Their 185 million strong user base acts as their marketing force. However, they acknowledge the need to cater to enterprise clients. Investments are being made in training materials and workshops to address the specific requirements of large organizations.

Competitive Landscape

Canva acknowledges competition from established design firms like Adobe and tech giants like Google and Microsoft. They emphasize the importance of interoperability and seamless integration with other tools. Canva's presentation feature, used by 50 million users monthly, highlights their focus on visual communication within organizations.

Product as the Core of Brand Building

Perkins emphasized the importance of a user-loved product as the foundation of brand building. Profitability, she believes, stems organically from a great product that users naturally recommend.

AI and Regulations

AI is central to Canva's product, and they prioritize responsible development with safety considerations and user access to AI learning tools. 

They actively engage with regulatory bodies worldwide as AI policies evolve.

Financial Strength and Growth Strategy

Profitability for the past six years has provided Canva with control over its destiny, allowing them to focus on building a sustainable company.

Note: The reporter attended Canva Create at the company's invitation.