Canva's Shopping Spree: Survival Strategy or Empire Building?

While Adobe's stock craters 30% this year, Canva is doubling down on expansion. The $42 billion design platform just scooped up two startups in a single swoop: motion graphics maker Cavalry and stealth video AI company MangoAI.

The timing couldn't be more strategic.

David vs. Goliath in the AI Era

Cavalry might be just four people, but it's punching above its weight. The 2D animation software has become the darling of designers seeking an alternative to Adobe After Effects. Its customer list reads like a tech industry who's who: Amazon, ByteDance, Google, and OpenAI employees are all paying subscribers.

Meanwhile, MangoAI brings AI-powered video creation and performance tracking to the table. Canva plans to fold this technology into its Canva Grow ad generator, part of its $250-per-person annual business tier.

"AI is great at getting you to 80%," explains Canva co-founder Cameron Adams. "That last 20% where you're confident you can push this content out and truly represent your brand... that's vital to have, and that last 20% is really tricky to do."

The Numbers Tell a Story

Canva's revenue hit $4 billion annualized in 2025, growing 36% year-over-year. Adobe, despite its market dominance, managed just 10% growth with $6.2 billion in quarterly revenue. Adobe's market cap still dwarfs Canva's at $101 billion versus $42 billion, but the momentum is shifting.

The broader software sector is getting hammered as investors fret about AI disruption. Yet Canva seems to be betting that acquisition, not just AI development, is the path forward.

Beyond the Hype: What This Really Means

Canva's shopping spree reveals a crucial insight about the AI revolution: it's not just about building better algorithms. It's about assembling an ecosystem that can compete with entrenched giants like Adobe.

By keeping Cavalry as a standalone product while integrating its technology into Canva's core platform, the company is playing both sides of the market. Professional designers get specialized tools, while casual users benefit from simplified interfaces powered by the same underlying technology.

The MangoAI acquisition is particularly telling. Video advertising is exploding, but creating effective campaigns requires more than just generating content—it demands performance analysis and optimization. That's exactly the kind of "last 20%" human insight Adams was talking about.

The Competitive Landscape Shifts

With over 5,000 employees and no immediate plans for new funding, Canva is operating from a position of strength. The company has successfully positioned itself as the accessible alternative to Adobe's professional-grade (and professionally-priced) suite.

But accessibility might not be enough anymore. As AI democratizes content creation, the real value lies in curation, optimization, and brand consistency—areas where human judgment still reigns supreme.