Canva to go up against Microsoft and Google

Graphic design platform Canva is taking on Microsoft and Google with a push into office software as it hopes to justify its $US26 billion ($39 billion) valuation and return to its pre-downturn peak of $US40 billion from late last year.

Australia’s most valuable privately held technology company will expand into word processing as part of a broader play in which its trademark drag-and-drop design tools will apply to new areas, including websites and virtual whiteboards in a substantial expansion of its potential market.

Co-founder and chief executive Melanie Perkins said the new products – chief among which is the Canva Docs writing app – unveiled under the umbrella of the “visual worksuite” at an event in Sydney’s Hordern Pavilion on Wednesday, fulfilled the company’s initial vision.

“Back in 2011 we were like, OK, we’re going to empower everyone to design anything and publish anywhere,” Perkins said on Tuesday. “Those few words took 10 years to do. But we are here.”

The launch puts Canva, which is best known as a rival to Adobe products that let people produce slick social media posts, in competition with the world’s largest technology companies.

Its whiteboard and website tools were unveiled last month but the broader suite of products makes Canva’s market – and competition – clearer.

Microsoft has Word and PowerPoint while Google has its online Docs and Slides tools. Dedicated virtual whiteboard companies Mural and Miro are also valued in the billions, albeit at less than Canva. Website design, too, is a contested space.

Canva’s leaders said their firm’s integrated products were an advantage and that making designing things easier would attract new potential customers.

Like the rest of the technology industry, Canva has endured a harder market this year than last. Its major investors, including the Australian venture capital firm Blackbird that has ridden its success more than any other, dropped the value of the company from $US40 billion to $US26 billion in July while some others went even lower.