From left, MangoAI’s Nirmal Govind, Canva Co-Founder and Chief Operating Officer Cliff Obrecht and MangoAI’s Vinith Misra.
Canva
Software stocks have been hammered in recent weeks as investors worry about threats from artificial intelligence. In the startup world, Canva has been among the highest fliers due to its popularity with designers, but that market is showing vulnerability, with larger rival Adobe down 30% so far this year.
As Canva reckons with dramatic changes in the market, the design software vendor is getting acquisitive. The company said Monday that it’s purchased two startups — Cavalry and MangoAI — that stand to help it challenge Adobe.
Cavalry, a four-person startup, sells subscriptions to software for creating two-dimensional animations. MangoAI is a stealth-mode company, whose technology can be used for creating short videos for advertising. Terms of the deals weren’t disclosed.
Cameron Adams, Canva’s co-founder and product chief, told CNBC that customers have been asking what the company can offer in motion graphics. Cavalry, which Canva has used for its own projects, has gained attention among designers on social media as an alternative to Adobe’s After Effects for some work.
Canva will continue to operate Cavalry for people to use and buy independently, while also incorporating the animation technology into the core Canva product and the Affinity application for professional designers. Canva bought Affinity in 2024 and made it free in October.
Amazon, ByteDance, Google, and OpenAI all have employees that are paying customers, according to Cavalry’s website.
Canva plans to incorporate MangoAI into the Canva Grow advertisement generator, which is available through its business tier at $250 per person per year. The MangoAI technology is able to track video performance and make recommendations.
“There’s a whole bunch that goes into creating the right video,” Adams said. That includes “being able to cut stuff down, being able to repurpose content from other campaigns and put it together, being able to take a great call to action that happens at the end of one video and then append it to the hook that happens in another video,” he said.
“Analyzing all of that across your campaigns is the full vision of Canva Grow, and Mango will help enable that,” Adams added.
Canva said it ended 2025 with over $4 billion in annualized revenue, up 36% from a year prior. Adobe reported $6.2 billion in revenue for the November quarter, up 10%. Adobe’s market capitalization stood at $101 billion on Monday, while Canva said in August that it had been valued at $42 billion in a secondary share sale, before the recent plunge in software stocks.
Adams said Canva has seen instances of people directing generative AI models to create content such as slide presentations and social media posts. But AI can’t do everything, he said.
“AI is great at getting you to 80%,” Adams said. “That last 20% where you’re confident that you can push this piece of content out and truly represent your brand and speak to your audience and achieve the goals that you want to achieve is vital to have, and that last 20% is really tricky to do.”
Canva, which now has over 5,000 employees, is not currently raising a new funding round, Adams said.
“Our revenue growth has not stopped, our user growth has not stopped, and the quality of our product is getting better and better with the inclusion of AI,” he said.
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